Omnicom in $13bn deal for Interpublic

February 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

February 2025 Issue

In a move that will create the world’s largest advertising agency, US media agency network Omnicom is to acquire its rival Interpublic Group in a stock for stock transaction valued at $13bn.

Under the terms of the definitive agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following closure of the transaction, Omnicom shareholders will own 60.6 percent of the combined company and Interpublic shareholders will own 39.4 percent, on a fully diluted basis.

Sharing highly complementary cultures and core values including a foundational belief in the power of ideas enabled by technology and data, Omnicom and Interpublic will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated companies.

The transaction is expected to generate annual cost synergies of $750m and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders. The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange.

“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 chief executive 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.”

Mr Wren will remain chairman and chief executive of Omnicom following the close of the transaction, with Phil Angelastro remaining as executive vice president and chief financial officer. Philippe Krakowsky, chief executive of Interpublic, and Daryl Simm, chief operating officer at Omnicom, will serve as Omnicom’s co-presidents and CCOs.

Mr Krakowsky will also be co-chair of the integration committee post-merger. Three current members of the Interpublic board of directors, including Mr Krakowsky, will also join Omnicom’s board of directors.

“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 Mr Krakowsky. “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 is changing at speed,” added Mr Krakowsky.

Serving as financial adviser to Omnicom is PJT Partners, with Latham & Watkins LLP serving as legal adviser. Morgan Stanley is serving as financial adviser to Interpublic, with Willkie Farr & Gallagher LLP serving as legal adviser.

The transaction is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals and other customary conditions.

Mr Wren concluded: “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 the entire Interpublic team to the Omnicom family.”

Fraser Tennant