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Omnicom Group has confirmed a takeover of rival holding company Interpublic Group (IPG).
The mega-merger between the two New York-listed businesses will create the world’s largest advertising group.
John Wren, chair and chief executive (CEO) of Omnicom, said in a statement the deal would combine “highly complementary data and technology platforms” to drive growth for clients.
Wren will remain as chairman and CEO of Omnicom, according to a press release. Phil Angelastro will remain as Omnicom evp and chief financial officer.
IPG CEO Philippe Krakowsky and COO Daryl Simm will serve as co-presidents and COOs of Omnicom.
Krakowsky will be co-chair of the integration committee after the merger, and will sit on the Omnicom board of directors.
“Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change,” Wren said in a statement.
Krakowsky, in a note sent to IPG staff, said he doesn’t expect the transaction to close until the second half of 2025, and that IPG and Omnicom shareholders, as well as government regulators, must approve.
“With that in mind, there won’t be any immediate changes to our day-to-day and we all need to remain focused on continuing to deliver great results for our clients and supporting each other,” he wrote.
He added: “I know each of you will have questions about your role as we become a part of the Omnicom organization next year. Know that our focus will be to care for our people, and we will be in continual contact on this front as our plans progress.”
A major power shift
The value of the deal was not disclosed, but the merger valued IPG at between $13 billion and $14 billion excluding debt, per the Wall Street Journal.
Based on 2023 figures, the new entity will have more than $20 billion in revenues and could unseat Publicis Groupe and WPP as the world’s largest holding companies.
Interpublic and Omnicom own a sprawling network of global advertising, marketing, and PR agencies, including McCann, FCB, and Mediabrands on the IPG side and BBDO and TBWA in Omnicom’s portfolio.
Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own.
Following the close of the deal, 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, per the joint statement.