Omnicom Acquires IPG, Stock-For-Stock Deal Agreed

The board of directors for advertising holding companies Omnicom and Interpublic (IPG) have unanimously approved a definitive agreement for Omnicom to acquire Interpublic in a stock-for-stock transaction. 

With a combined 2023 revenue of $25.6 billion, adjusted EBITA of $3.9 billion, and free cash flow of $3.3 billion, the combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange. 

John Wren will remain chairman and CEO of Omnicom. Phil Angelastro will remain EVP and CFO of Omnicom. Philippe Krakowsky and Daryl Simm will serve as co-presidents and COOs of Omnicom. Krakowsky will also be co-chair of the Integration Committee post-merger. Three current members of the Interpublic board of directors, including Philippe Krakowsky, will be welcomed to the Omnicom board of directors.

Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients. The transaction is expected to generate $750 million in annual cost synergies and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders.

Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each  share of Interpublic common stock they own. Following the close of the transaction, Omnicom shareholders  will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted  basis. The transaction is expected to generate annual cost synergies of $750 million. 

“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,” said John Wren, chairman and CEO of Omnicom.

“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.” 

The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services  across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding. 

“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,” said Philippe Krakowsky, Interpublic’s CEO.

“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.” 

Both Omnicom and Interpublic will maintain their current quarterly dividend through the closing of the transaction.