Cheil Worldwide has invested in independent creative advertising agency Iris.
Iris will join Cheil in a strategic partnership deal, however both will continue to operate as separate entities.
Although the initial level of the investment in Iris has not been revealed, an option for Cheil to buy the agency outright has also been put in place within the next five years.
Iris partnership with US media company Meredith, which held a 15-25 per cent stake since 2011, will also come to an end as a result.
Daiki Lim, president and CEO of Cheil Worldwide, said: “Our goal was to find the right partner who could match our determination and drive. We've watched with awe how iris has built its global business and we are delighted to have this opportunity to work with their brand. Their membership in the Cheil Worldwide network will bring great value and agility to us and to our clients.
“Together with iris, we will provide a different level of service that is able to achieve amazing new creativity and offer best-in-class capabilities. This relationship is a key catalyst in our ambition to be the best possible partner to our clients to deliver 'Ideas That Move'.”
Ian Millner, joint chief executive at iris, added: “We are about to enter the most exciting chapter for iris. This partnership won’t change who we are or what we do as a creative innovation network – but will extend our global reach and capabilities, and enable our clients and people to benefit from the huge opportunity presented by a true ‘East Meets West’ and ‘West Meets East’ network.
The Drum understands that no changes to staff will occur as a result.
Cheil was advised by Results International and Linklaters while Iris was advised by Osborne Clarke and BDO.