Omnicom and Interpublic Group confirmed today that their boards have approved a definitive agreement by which Omnicom would acquire Interpublic in an all-stock transaction. 

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

Wren will remain chairman & CEO of Omnicom. Phil Angelastro will remain executive vice president & 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 join the Omnicom Board of Directors.   

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.  

Omnicom will have combined 2023 revenue of $25.6 billion, Adjusted EBITA of $3.9 billion and free cash flow of $3.3 billion. 

The firm will have combined 2023 revenue of 57% U.S. and 43% International.  

The stock-for-stock transaction is expected to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and other conditions. The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange. 

Word of the transaction broke over the weekend in The Wall Street Journal.   

“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 & 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.”   

Added IPG CEO Philippe Krakowsky: “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.”