Omnicom to Acquire Interpublic Group to Create Premier Marketing and Sales Powerhouse.
Omnicom (NYSE: OMC) and The Interpublic Group of Companies, Inc. (NYSE: IPG) have announced a definitive agreement for Omnicom to acquire Interpublic in a stock-for-stock transaction. This merger will unite two of the world’s most innovative and influential marketing giants, combining their expertise, technology, and services to create a powerhouse capable of delivering comprehensive, data-driven solutions to clients across the globe.
The merger, approved by both companies’ boards of directors, will see Interpublic’s shareholders receive 0.344 Omnicom shares for every Interpublic share they own. Upon completion, Omnicom shareholders will control 60.6% of the newly merged entity, while Interpublic shareholders will hold 39.4%. The transaction is expected to generate significant annual cost synergies of $750 million, bolstering both companies’ financial profiles and delivering enhanced value to their shareholders.
The Synergy of Two Marketing Giants
Omnicom, with its global presence, serves a diverse range of industries including media, precision marketing, digital commerce, public relations, and branding. Interpublic adds another layer of complementary expertise, bringing in cutting-edge marketing solutions powered by advanced data analytics and digital platforms. By combining forces, Omnicom and Interpublic are positioned to offer a unique portfolio of services designed to help businesses thrive in a rapidly evolving market.
“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. 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” said John Wren, Chairman & CEO of Omnicom
Philippe Krakowsky, CEO of Interpublic, echoed the sentiment, emphasizing the strategic nature of the merger. “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.”
Strong Financial Outlook and Strategic Growth
The financial prospects of the merged entity look promising, with a projected combined revenue of $25.6 billion for 2023, an Adjusted EBITA of $3.9 billion, and free cash flow of $3.3 billion. The majority of the combined revenue—57%—will come from the U.S., with the remaining 43% generated from international markets. The newly formed Omnicom will maintain a robust balance sheet and an investment-grade rating, positioning itself as a strong player in the global marketing industry.
A Tax-Free, Smooth Transition
The merger is expected to be tax-free for both Omnicom and Interpublic shareholders. The transaction, which is anticipated to close in the second half of 2025, is still subject to shareholder approval, regulatory clearances, and other conditions. Once completed, the newly formed entity will continue to be known as Omnicom and will trade under the OMC ticker symbol on the New York Stock Exchange.
Omnicom Group Inc. is a leading global marketing and corporate communications company headquartered in New York City. Founded in 1986, Omnicom operates a vast network of over 1,500 agencies and serves clients across a range of industries including advertising, marketing, public relations, media buying, and digital services. The company offers a comprehensive portfolio of services across various sectors such as precision marketing, media, CRM, healthcare, and branding.
Omnicom’s diverse brands include some of the most well-known names in marketing, such as BBDO, DDB, and TBWA. Known for its data-driven, innovative approach, Omnicom focuses on delivering integrated solutions that drive measurable business results for clients globally. The company employs over 70,000 professionals and operates in over 100 countries.
Omnicom is committed to using technology and creativity to meet the evolving needs of its clients. The company places significant emphasis on sustainability, diversity, and social responsibility within its operations. As a publicly traded entity (NYSE: OMC), Omnicom continues to be a leader in the marketing and communications industry.
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