Omnicom and Interpublic announced a definitive agreement for Omnicom to acquire Interpublic in an all-stock transaction.
The deal, approved unanimously by the boards of both companies, will form the world’s largest advertising agency with a combined 2023 revenue of $25.6 billion.
Under the terms, Interpublic shareholders will receive 0.344 Omnicom shares for each share they own, representing a 21.6% premium to Interpublic’s Friday closing price. Post-merger, Omnicom shareholders will hold 60.6% of the combined entity, while Interpublic shareholders will hold 39.4%.
The combined company will retain the Omnicom name and trade under the OMC ticker symbol.
John Wren, Omnicom’s Chairman and CEO, will retain his roles while Philippe Krakowsky, Interpublic CEO, and Daryl Simm will serve as Co-Presidents and COOs of Omnicom. Krakowsky will also co-chair the Integration Committee, and three Interpublic board members will join the Omnicom board.
“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. “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.”
Philippe Krakowsky remarked, “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. 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.”
The deal is expected to close in the second half of 2025, subject to shareholder and regulatory approvals. Both companies will continue paying their current quarterly dividends until the transaction closes. Annual cost synergies of $750 million are anticipated from the merger.
Omnicom shares, valued at $20.2 billion before the announcement, fell by 4% in premarket trading following the news of the merger. In contrast, Interpublic shares, which closed at $29.26 on Friday, rose nearly 15% in premarket trading, reflecting the 21.6% premium offered in the deal. Year-to-date, Omnicom shares have gained approximately 20%, while Interpublic shares had declined over 10% before the announcement.
