Omnicom Group Inc. to Acquire Interpublic Group in $30 Billion Deal
Omnicom Group Inc. and Interpublic Group of Companies Inc. have announced a stock-for-stock deal that will create the largest ad agency in the world, with a combined annual revenue of almost $26 billion. The combined company will be worth more than $30 billion and will be led by Omnicom’s Chairman and CEO, John Wren.
The new marketing giant will have a strong position in creative and media, as well as across areas like specialty healthcare, experiential, and PR. The deal is expected to have annual cost savings of $750 million and is expected to close during the second half of next year.
The companies will keep their respective names, with Omnicom retaining its name and ticker symbol “OMC” on the New York Stock Exchange. Shareholders of Interpublic will receive 0.344 Omnicom shares for each share of Interpublic common stock that they own, resulting in Omnicom shareholders owning 60.6% of the combined company and Interpublic shareholders owning 39.4%.
The deal is expected to accelerate innovation and harness the significant opportunities created by new technologies in the era of exponential change. The combined company will be well-positioned to take advantage of new technologies like artificial intelligence, with a strong position in creative and media.
The transaction is subject to the approval of Omnicom and Interpublic shareholders and is expected to close during the second half of next year.