
Omnicom Group Inc. and Interpublic Group of Companies, Inc. (NYSE: IPG) have announced a definitive agreement to merge, combining their expertise to create a premier global marketing and sales powerhouse.
This strategic stock-for-stock transaction, unanimously approved by both companies’ Boards of Directors, will unite the industry’s leading talent and innovative services to deliver unmatched marketing solutions for clients worldwide.
Under the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each Interpublic share they own, resulting in Omnicom shareholders holding 60.6% and Interpublic shareholders owning 39.4% of the combined company. The merger is expected to yield $750 million in annual cost savings and enhance earnings for shareholders of both firms.
The combined entity will bring together over 100,000 marketing professionals, offering comprehensive services across media, digital commerce, healthcare, branding, and more. Clients will benefit from a robust portfolio of data-driven, full-funnel marketing solutions.
Omnicom Group Agencies:
Omnicom operates through five major agency networks, overseeing over 1,500 agencies globally:
- BBDO Worldwide: A renowned creative agency recognized for its innovative advertising campaigns.
- DDB Worldwide: A global marketing communications network known for its creative solutions.
- TBWA Worldwide: An international agency network celebrated for its disruptive approach to advertising.
- Omnicom Media Group (OMG): The media services division, providing media planning and buying services through agencies like OMD Worldwide and PHD Network.
- Diversified Agency Services (DAS): A division encompassing a variety of specialized agencies across disciplines such as public relations, healthcare, and customer relationship management.
Interpublic Group (IPG) Agencies:
IPG’s network includes several major agency networks and independent agencies:
- McCann Worldgroup: A global marketing services organization comprising agencies like McCann (advertising), MRM (digital marketing), and Momentum Worldwide (experiential marketing).
- FCB (Foote, Cone & Belding): A global integrated marketing communications company.
- MullenLowe Group: An integrated marketing communications network known for its hyperbundled approach.
- IPG Mediabrands: The media holding arm, including agencies such as UM and Initiative, specializing in media planning and buying.
- Weber Shandwick: A leading global public relations firm.
- R/GA: A full-service digital agency offering advertising and marketing services.
- The Martin Agency: An advertising agency recognized for its creative excellence.
The New Leadership
John Wren, Chairman and CEO of Omnicom, will continue leading the organization, supported by a leadership team that includes Philippe Krakowsky, CEO of Interpublic, and Daryl Simm as Co-Presidents and COOs. The merger will also see three Interpublic board members, including Krakowsky, joining Omnicom’s Board of Directors.
“This acquisition brings tremendous value to our shareholders and clients,” said Wren. “By integrating our capabilities and technology, we are positioned to lead innovation and deliver exceptional results in today’s dynamic marketing landscape.”
Krakowsky added, “This merger offers a unique opportunity to enhance our investments in talent and technology, creating a more expansive network. Together, we’ll deliver comprehensive solutions that drive growth and success for our clients.”
The merger brings together complementary assets to create an expanded portfolio of unmatched services, offering enhanced opportunities for clients from the outset. By leveraging advanced data and technology tools, the combined company will gain deeper insights into consumer behavior, enabling superior outcomes.
Its enhanced capacity for product development and innovation promises higher returns on marketing investments, while significant free cash flow ensures robust financial strength to support ongoing investments and future acquisitions.
Financial and Operational Details
The new Omnicom, retaining its name and trading under the OMC ticker, is projected to achieve $25.6 billion in combined revenue and $3.9 billion in adjusted EBITA based on 2023 figures. This will make it a formidable competitor against UK-based WPP and Publicis. The transaction is expected to be tax-free for shareholders and close in the second half of 2025, pending shareholder and regulatory approvals.
REELated:
Omnicom consolidates DDB, BBDO, TBWA under OAG