Advertising agency R/GA buys AI Studio for its inaugural acquisition
R/GA, a nearly 50-year-old company, has made its first acquisition since becoming an independent, privately held company with backing from private equity firm Truelink Capital. The acquisition is of AI system design studio Addition, a company founded in 2021 that has worked with high-profile clients such as Google, Amazon, NBCUniversal, Unilever, Prudential, and The New York Times.
This strategic move is a key part of R/GA's long-term vision to lead AI-enabled creative innovation. The acquisition reflects R/GA's "new story" fueled by independence, flexibility, and investment, positioning AI as a "potent opportunity" to set a new industry tone in creativity.
R/GA's Future Plans and Strategic Vision
R/GA's future plans and strategic vision include:
- Expanding AI talent, processes, and development tools by integrating Addition’s 12-person expert team and network into R/GA to enhance AI system design and development capabilities.
- Leveraging Addition’s cutting-edge AI solutions expertise to deliver personalized, adaptive, and highly effective AI-powered creative experiences for clients.
- Using funding from R/GA’s $50 million Innovation Fund to invest in new kinds of talent, product development, partnerships, and acquisitions focused on AI and creativity.
- Continuing to foster AI-enabled creative services, generative AI experimentation (e.g., in video and search optimization), and global AI product development to shape the “next generation of creative experiences”.
- Allowing Addition to retain its brand and independent offering while also contributing its AI capabilities broadly within R/GA, creating a flexible hybrid model of integration and autonomy.
Addition's Integration into R/GA
Addition will continue to go to market with its independent offering while also lending its capabilities to R/GA more broadly. This acquisition allows Addition to retain a level of independence and continue serving its core clients as normal, while also collaborating on R/GA client work. The two companies have already begun integrating their operations.
Addition brings a specialized, deep expertise in AI system design and development to R/GA. CEO Robin Forbes described the acquisition as a "long-term strategic investment," and global CEO Robin Forbes and Addition's co-founders Aaron and Barber will join R/GA's global executive management team.
Forbes hinted at potential future acquisitions, stating that the Innovation Fund is designed for ongoing investments. The deal was made after R/GA was sold by IPG and to a group of its leaders, with majority backing from private equity firm Truelink Capital.
In summary, R/GA envisions this acquisition as a transformative step in embedding advanced AI system design at the core of its global creative services, accelerating AI-led innovation to stay at the forefront of the intelligence age in marketing and brand experience.
- R/GA plans to use the funds from its Innovation Fund to make further investments in talents, product development, and acquisitions, specifically focusing on AI and creativity.
- The integration of Addition's 12-person expert team and network into R/GA will enhance the company's AI system design and development capabilities.
- The acquisition of Addition, with its cutting-edge AI solutions expertise, will enable R/GA to deliver personalized, adaptive, and highly effective AI-powered creative experiences for its clients.
