Omnicom Acquires Interpublic; Shares Rise

By Tamara Parker • Monday, December 09 15:15 • Permanent Link

Omnicom (NYSE: OMC) has announced its acquisition of The Interpublic Group of Companies, Inc. (NYSE: IPG) in a stock-for-stock transaction. The combined company is expected to bring together the industry's deepest bench of marketing talent and the broadest and most innovative services and products underpinned by the most advanced sales and marketing platform.

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 transaction, 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 and create a new Omnicom with over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations, and branding.

The combined company's financial profile is expected to include combined 2023 revenue of $25.6 billion, adjusted EBITA of $3.9 billion, and free cash flow of $3.3 billion. The combined 2023 revenue is projected to be 57% U.S. and 43% international. The combined company is expected to have a strong balance sheet with a commitment to an investment-grade rating and a combined debt to EBITDA ratio of 2.1x before the benefit of synergies.

The stock-for-stock transaction is anticipated to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to shareholder and regulatory approvals.

Omnicom’s CEO, John Wren, will remain chairman and CEO of the combined company, while Philippe Krakowsky and Daryl Simm will serve as co-presidents and COOs of Omnicom. Krakowsky will also be co-chair of the integration committee post-merger.

The transaction is expected to be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders.

The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange.

The financial details and metrics mentioned in the press release indicate the significant impact and potential growth prospects of the combined company following the acquisition. Today the company's shares have moved 5.3% to a price of $30.82. If you want to know more, read the company's complete 8-K report here.

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