Omnicom and the Interpublic Group of Companies have entered into a tax-free all-stock transaction that will see the former acquire the latter to create the world’s largest ad agency with over 100,000 employees.
Under the terms of the agreement, IPG shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close of the transaction in the second half of 2025, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%.
“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,” Omnicom chiarman and CEO John Wren said in a statement “Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change.”
“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,” Interpublic CEO Philippe Krakosky added. “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.”
Wren will continue to serve as Omnicom’s chairman and CEO and Phil Angelastro will remain executive vice president and chief financial officer. Krakowsky and Daryl Simm will serve as co-presidents and chief operating officers of Omnicom. Three current members of the Interpublic board of directors, including Krakowsky, will join the Omnicom board. Krakowsky will also be co-chair of the Integration Committee post-merger.
The deal, which is expected to generate annual cost synergies of $750 million, is subject to shareholder approval, required regulatory approvals, and other customary conditions.
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 Interpublic will maintain their current quarterly dividend through the closing of the transaction.
Shares of Omnicom fell over 6% during Monday’s trading session following the announcement, while IPG shares surged 10%.
The post Omnicom to Acquire Rival Interpublic Group, Creating Ad Agency Powerhouse appeared first on TheWrap.
