KKR Eyes Stake In Communications Firm FGS Global For $1.4B: Report - WPP (NYSE:WPP), KKR (NYSE:KKR)

KKR & Co KKR is reportedly in talks to acquire a significant stake in FGS Global, a WPP PLC WPP backed financial communications firm, for ~$1.4 billion.
KKR is expected to acquire more than 30% of FGS from a combination of senior employees at FGS and advertising company WPP, reported Financial Times, quoting people with knowledge of the matter.
WPP, which currently owns approximately 57.4% of FGS Global, is expected to retain a majority stake in the company, allowing it to continue to consolidate the group's accounts, the report added.
FGS has been formed over the past few years through the merger of communications and lobbying companies, London-based Finsbury, Frankfurt-based Hering Schuppener, and Washington, DC-based Glover Park Group — controlled by WPP.
FGS Global employs more than 1,200 people and has about 200 partners. The senior leadership and partners own ~40% of its shares.
According to the report, FGS aimed for an IPO by 2024 under the terms of the group roll-up. The KKR investment is likely to postpone that target.
Price Action: KKR shares closed lower by 2.35% at $49.81 and WPP lower by 2.50% at $58.21 on Wednesday.