Omnicom to Acquire Interpublic in Major Advertising Industry Merger
Deal News | Dec 10, 2024 | EIN
Omnicom Group and Interpublic Group (IPG) have reached a definitive merger agreement to create the largest advertising holding company globally. The merger, approved by both companies' boards, stipulates an all-stock transaction where IPG shareholders will receive 0.344 Omnicom shares for each IPG share. Post-merger, Omnicom shareholders will own 60.6% of the combined entity, while IPG shareholders will hold the remaining 39.4%. The merger, expected to close in the second half of 2025, projects annual cost synergies of $750 million and requires both shareholder and regulatory approvals. The new entity will retain the Omnicom name and OMC ticker on the NYSE, employ over 100,000 people, and offer a range of services in media, marketing, digital commerce, and more. Key leadership changes involve John Wren continuing as Chairman and CEO and Philippe Krakowsky transitioning to co-president and co-COO. The merger aims to combine Omnicom’s and IPG’s complementary data and technology platforms to deliver a comprehensive portfolio of services.
Sectors
- Advertising and Marketing
- Media and Communications
Geography
- United States – Both Omnicom Group and Interpublic Group are major U.S.-based advertising companies, and their merger will have significant implications in the U.S. market.
Industry
- Advertising and Marketing – The article discusses a major merger between two leading advertising holding companies, Omnicom Group and Interpublic Group, impacting the advertising and marketing industry.
- Media and Communications – The merger will create a leading company offering services across media, public relations, and communication sectors.
Financials
- $750 million – Projected annual cost synergies from the Omnicom and Interpublic merger.
- 0.344 Omnicom shares for each IPG share – Exchange ratio for the all-stock transaction.
- 60.6% – Post-merger ownership percentage by Omnicom shareholders.
- 39.4% – Post-merger ownership percentage by IPG shareholders.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Omnicom Group | Bidding Company | Company | A leading global advertising and marketing communications services company. |
| Interpublic Group (IPG) | Target Company | Company | One of the world's leading organizations of advertising agencies and marketing services. |
| John Wren | Chairman and CEO of Omnicom Group | Person | Current Chairman and CEO who will continue in his roles post-merger. |
| Philippe Krakowsky | CEO of IPG / Future Co-President and Co-COO of Merged Company | Person | Current CEO of Interpublic Group who will take on a new leadership position after the merger. |
| Phil Angelastro | Executive Vice President and CFO | Person | Will remain in his role as EVP and CFO post-merger. |
| Daryl Simm | Future Co-President and Co-COO of Merged Company | Person | Will assume a new leadership position in the merged entity alongside Krakowsky. |