To remain independent, AKQA has agreed to a recapitalization by private equity firm General Atlantic, reports AdWeek. Terms of the deal were not made public.

AKQA had reportedly placed itself on the block for $150-250 million, to allow previous majority-owner Francisco Partners - which invested $70 million to form AKQA in March 2001 - to cash out. The agency's annual revenue is $75-100 million, according to sources.

"We have a longer-term investment horizon and look for market leaders in their sector," Pat Hedley, SVP at Greenwich, Conn.-based General Atlantic, is quoted as saying.

AKQA had drawn interest from traditional Madison Avenue players such as WPP Group and Omnicom Group, writes the New York Post. The agency has nearly 500 employees in the U.S., Europe and Asia, and counts Nike, Visa, Microsoft, McDonald's and Unilever among its well-known clients.

Madison Avenue is in the midst of a digital media talent drought, and traditional players are eager to tap into digital agencies.