NEW YORK—In a notable sign that companies are hoping for a much more relaxed regulatory attitude towards big corporate mergers in the upcoming Trump administration, Omnicom Group said it reached a definitive agreement to acquire the Interpublic Group of Cos., creating a giant that promises to reshape the advertising and marketing business.
In 2013, Omnicom and Publicis announced a merger that eventually fell apart. If this one succeeds, it would create the world's largest advertising company with a combined 2023 revenue of $25.6 billion, adjusted EBITA (earnings before interest depreciation and taxes) of $3.9 billion and free cash flow of $3.3 billion. About 57% of its combined 2023 revenue came from the U.S. and 43% International.
The deal is expected to close in the second half of 2025.
Under the terms of the agreement, which has been valued at more than $13 billion, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close, 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 companies said. The combined Omnicom-IPG will employ over 100,000 people involved in end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.
“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,” Omnicom chairman and CEO John Wren said. “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,” Philippe Krakowsky, Interpublic’s CEO, said. “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.”
As part of the deal, John Wren will remain chairman and CEO of Omnicom. Phil Angelastro will remain executive VP and chief financial officer. Philippe Krakowsky and Daryl Simm will serve as co-presidents and chief operating officers . Krakowsky will also be co-chair of the Integration Committee post-merger. Three current members of the Interpublic board, including Philippe Krakowsky, will join Omnicom’s board.
