Omnicom plans to acquire Interpublic Group in $13B+ deal
TL;DR
- Omnicom will acquire Interpublic Group in a stock-for-stock transaction worth $13–$14 billion.
- The merger is expected to close in the second half of 2025, pending approvals.
- The combined revenue of $25 billion will surpass rivals WPP and Publicis Groupe.
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Omnicom Group has announced plans to acquire Interpublic Group (IPG) in a stock-for-stock transaction reportedly valued between $13 and $14 billion. According to the platform, the transaction has been approved unanimously by the boards of both companies.
As part of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each Interpublic share they own. Once the deal is finalized, Omnicom shareholders will own 60.6% of the combined company, with IPG shareholders holding 39.4%.
The transaction is expected to close in the second half of 2025, pending regulatory and shareholder approvals.
Industry implication
The merger could create the world's largest advertising company, with over $25 billion combined annual revenue. This figure surpasses WPP, which currently leads the market with $18.5 billion in revenue.
Omnicom is currently the third-largest advertising holding company globally, reporting $14.7 billion in revenue for 2023. Meanwhile, IPG ranks fourth with $10.9 billion. The two companies will outperform industry giants like Publicis Groupe, which posted $15.8 billion.
Financial and operational impact
The companies project annual cost synergies of $750 million once the merger is complete. The deal is also expected to enhance adjusted earnings per share for Omnicom and IPG shareholders.
The combined company will boast over 100,000 professionals and offer services across media, digital commerce, data, healthcare, CRM, and public relations, per Omnicom.
Omnicom, valued at $20.2 billion, has demonstrated steady growth. It made a $835 million purchase of Flywheel Digital in 2023. Interpublic, with a market value of nearly $11 billion, has recently restructured by selling non-core assets like Huge and focusing on digital transformation through acquisitions like Intelligence Node.
This marks the first major holding company merger attempt in over a decade. In 2013, the merger between Omnicom and Publicis fell apart due to cultural and leadership disagreements.