The brand consultancy will become part of the New York office of Hill Holliday, combining Frankfurt Balkind's 70 staff with the existing 125 at Hill Holliday.
As part of the deal, Hill Holliday, which has $800m (拢523m) in billings in the US, will pick up clients including the Guggenheim Museum and Pitney Bowes, the US mailing company.
Frankfurt Balkind will retain a semi-autonomous status, with president Aubrey Balkind continuing in his role. The agency was founded in 1972 and specialises in strategy, identity, new media, advertising and marketing communications. Other clients it has worked for include Saks Fifth Avenue, Grand Central Station and the Economist magazine.
Shares in Interpublic, which also owns the Foote, Cone & Belding and McCann-Erickson WorldGroup advertising networks, fell by 6.87% as the market suffered yesterday. They closed at $23.06, down $1.70 on the previous closing price.
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