Omnicom acquisition of Interpublic Group made official
Omnicom’s acquisition of Interpublic Group has been unanimously approved by Board directors at both companies, with a definitive agreement made this week.
Under the terms of the agreement, for each Interpublic common stock they own, Interpublic shareholders will receive 0.344 Omnicom shares. Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined business, and Interpublic shareholders will own 39.4%, on a fully diluted basis.
The transaction is expected to generate annual cost synergies of $750 million. The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York stock exchange.
The stock-for-stock transaction is expected to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to shareholder approvals, required regulatory approvals, and other customary conditions.
The new Omnicom – which will be the world’s largest advertising holding company – will have over 100,000 practitioners delivering end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations, and branding.
(L-R): John Wren, chairman and CEO of Omnicom; Philippe Krakowsky, CEO of Interpublic Group
Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients.
“This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” said John Wren, Chairman & CEO of Omnicom.
“Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family.”
Philippe Krakowsky, Interpublic’s CEO, added: “This combination represents a tremendous strategic opportunity for our stakeholders, amplifying our investments in platform capabilities and talent as part of a more expansive network.
“Our two companies have highly complementary offerings, geographic presence and cultures. We also share a foundational belief in the power of ideas, enabled by technology and data. By joining Omnicom, we are creating a uniquely comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a world that’s changing at speed. We look forward to working with John and the entire Omnicom team.”
Wren will remain Chairman and CEO of Omnicom, and Phil Angelastro will remain EVP and CFO.
Krakowsky will serve as co-president and co-COO of Omnicom, alongside current Omnicom COO, Daryl Simm. He will also be co-chair of the Integration Committee, post-merger. Three current members of the Interpublic Board, including Krakowsky, will also be welcomed to the Omnicom Board.
Mumbrella has contacted Omnicom and Interpublic for local comment.
Keep up to date with the latest in media and marketing
Got a tip?
Lauren McNamara is the associate editor at Mumbrella, covering the agency beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
Linkedin
Have your say