Shareholders of Omnicom and Interpublic Group of Companies have signed off on the two advertising giants’ pending $13 billion merger to create a combined company with over 100,000 employees and revenue of $25.6 billion.
Under the terms of the all-stock transaction, IPG shareholders will receive 0.344 Omnicom shares for each share of IPG common stock they own. Following the closing of the transaction, Omnicom shareholders will own 60.6% of the combined company and IPG shareholders will own 39.4%.
“With an overwhelming majority voting in favor of the transaction, it is clear that our stockholders see the immense opportunity of Interpublic joining forces with Omnicom,” Interpublic CEO Philippe Krakowsky said in a statement. “Their approval reflects the tremendous potential we have to create one of the most dynamic, client-focused and forward-leaning organizations in our industry that will deliver significant shareholder value for years to come.”
“We are very pleased to reach this important milestone,” Omnicom chairman and CEO John Wren added. “The strong support of our stockholders confirms the compelling value proposition of the transaction and the leading-edge services, products and platforms it will create for our people and clients.”
The final voting results for each company’s special meeting will be filed with the U.S. Securities and Exchange Commission and will be accessible in filings publicly available on the agency and companies’ websites.
The deal, which is expected to generate annual cost synergies of $750 million, is on track to close in the second half of 2025, subject to required regulatory approvals and other customary conditions.
The Federal Trade Commission has requested additional information about the transaction, which Omnicom says is a “standard part of the regulatory process” that was issued under requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.
“Omnicom and Interpublic have been engaged with the FTC throughout the regulatory process and will continue to address its queries going forward,” the former said in a statement last week.
If the deal goes through, the combined company would have $25.6 billion in revenue, adjusted EBITDA of $3.9 billion and free cash flow of $3.3 billion, based on 2023 figures.
The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange. Both Omnicom and IPG will maintain their current quarterly dividend through the closing of the transaction.
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