Omnicom has closed its $13.25 billion all-stock acquisition of The Interpublic Group of Companies, Inc. (IPG), creating the world’s largest media buying advertising agency with over 100,000 employees and $25 billion in revenue.
Under the terms of the deal, IPG shareholders will receive 0.344 Omnicom shares for each share of common stock they owned. Legacy Omnicom shareholders own approximately 60.6% of the combined company and legacy Interpublic shareholders own approximately 39.4% on a fully diluted basis.
The combined company, which will trade under the OMC ticker symbol on the New York Stock Exchange, will have $25.6 billion in revenue, adjusted EBITDA of $3.9 billion and free cash flow of $3.3 billion based on 2023 figures. The deal is expected to generate synergies of $750 million.
Prior to the deal’s closure, Omnicom and IPG were the third- and fourth-largest media buying advertising agencies in the U.S.
“This is a defining moment for our company and our industry,” Omnicom chairman and CEO John Wren said in a statement. “With the completion of the deal, Omnicom is setting a new standard for modern marketing and sales leadership — creating stronger brands, delivering superior business outcomes, and driving sustainable growth. We’re excited about this next chapter. I want to thank our people, clients, and shareholders for the trust they have placed in us.”
The deal’s closure comes after the Federal Trade Commission issued an order that restricted Omnicom from “engaging in collusion or coordination to direct advertising away from media publishers based on the publishers’ political or ideological viewpoints.”
It also eliminated Omnicom’s ability to deny advertising dollars to media publishers based on those viewpoints, except at the “express and individualized direction of Omnicom’s advertiser customers.”
In addition to Wren remaining as chairman & CEO, Phil Angelastro remains EVP & CFO, and Philippe Krakowsky and Daryl Simm will serve as Co-Presidents and COOs. Krakowsky, Patrick Moore and E. Lee Wyatt Jr. have also joined the Omnicom board of directors.
The company’s full leadership team will be revealed on Dec. 1.
