Omnicom Confirms IPG Acquisition Creating A Mega Marketing Entity

Omnicom and The Interpublic Group of Companies have reported that their Boards of Directors have unanimously approved a definitive stock-for-stock merger agreement.

As per the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each Interpublic common share they own. Post-transaction, Omnicom shareholders will hold 60.6 per cent of the combined entity while Interpublic shareholders will own 39.4 per cent, on a fully diluted basis. The merger is anticipated to deliver annual cost synergies of $750 million.

The combined company, operating under the Omnicom name, will boast a workforce of over 100,000 professionals. It will offer comprehensive services spanning media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.

John Wren, Chairman & CEO of Omnicom said, “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.”

"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.”

Wren will continue as Chairman and CEO of Omnicom, with Phil Angelastro remaining as EVP and CFO. Krakowsky and Daryl Simm will assume roles as Co-Presidents and COOs of Omnicom. Additionally, Krakowsky will serve as Co-chair of the Integration Committee following the merger.

The Omnicom Board of Directors will welcome three current members of Interpublic's Board including Krakowsky. The merged entity will retain the Omnicom name and continue trading under the OMC ticker symbol on the New York Stock Exchange.