Omnicom The group has confirmed the takeover of rival holding company Interpublic Group (IPG).
The mega-merger between the two New York-listed companies will create the largest advertising group in the world.
John Wren, Omnicom’s chief executive officer (CEO), said in a statement that the deal would combine “highly complementary data and technology platforms” to drive customer growth.
Wren will remain president and CEO of Omnicom, according to a press release. Phil Angelastro will remain executive vice president and chief financial officer of Omnicom.
CEO of IPG Philippe Krakowsky and COO Daryl Sim will serve as co-presidents and chief operating officers of Omnicom.
Krakowsky will co-chair the post-merger integration committee and serve on Omnicom’s board of directors.
“With this combination, we are poised to accelerate innovation and exploit the significant opportunities created by new technologies in this era of exponential change,” Wren said in a statement.
The value of the transaction was not disclosed, but the merger values IPG between $13 billion and $14 billion excluding debt, according to the report. The Wall Street Journal.
“Our two companies have very complementary offerings, geographic presence and cultures. We also share a fundamental belief in the power of ideas, enabled by technology and data,” Krakowsky said in a statement.
Based on 2023 figures, the new entity will have a turnover of more than $20 billion and could topple Publicis Groupe and WPP as the world’s largest holding companies.
Terms of Agreement
Interpublic and Omnicom have an extensive network of global advertising, marketing and public relations agencies, including McCann, FCB and Mediabrands on the IPG side and BBDO and TBWA in the Omnicom portfolio.
Under the terms of the agreement, Interpublic shareholders will receive 0.344 shares of Omnicom for each share of Interpublic common stock they own.
After the transaction closes, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%.
The transaction is expected to generate annual savings of $750 million, according to the joint statement.
This story is breaking and will be updated soon with more information.
