Omnicom and The Interpublic Group of Corporations, right this moment introduced their Boards of Administrators have unanimously accredited a definitive settlement pursuant to which Omnicom will purchase Interpublic in a stock-for-stock transaction. The mixed firm will convey collectively a bench of promoting expertise, and revolutionary companies and merchandise, pushed by essentially the most superior gross sales and advertising and marketing platform. Collectively, the businesses will broaden their capability to create complete full-funnel options that ship higher outcomes for the world’s most refined purchasers.
Underneath the phrases of the settlement, Interpublic shareholders will obtain 0.344 Omnicom shares for every share of Interpublic frequent inventory they personal. Following the shut of the transaction, Omnicom shareholders will personal 60.6% of the mixed firm and Interpublic shareholders will personal 39.4%, on a totally diluted foundation. The transaction is anticipated to generate $750 million in annual value synergies and be accretive to adjusted earnings per share for each Omnicom and Interpublic shareholders.
The brand new Omnicom may have over 100,000 professional practitioners. The corporate will ship end-to-end companies throughout media, precision advertising and marketing, CRM, knowledge, digital commerce, promoting, healthcare, public relations and branding.
John Wren will stay chairman and CEO of Omnicom. Phil Angelastro will stay EVP and CFO of Omnicom. Philippe Krakowsky and Daryl Simm will function co-presidents and COOs of Omnicom. Krakowsky can even be co-chair of the Integration Committee post-merger. Three present members of the Interpublic Board of Administrators, together with Philippe Krakowsky, will probably be welcomed to the Omnicom Board of Administrators.
“This strategic acquisition creates vital worth for each units of shareholders by combining world-class, extremely complementary knowledge and expertise platforms enabling new choices to higher serve our purchasers and drive progress,” mentioned John Wren, Chairman & CEO of Omnicom. “By means of this mix, we’re poised to speed up innovation and harness the numerous alternatives created by new applied sciences on this period of exponential change. Now could be the right time to convey collectively our applied sciences, capabilities, expertise and geographic footprints to convey purchasers superior, data-driven outcomes. We’re excited to welcome Philippe and the whole Interpublic group to the Omnicom household.”
“This mix represents an amazing strategic alternative for our stakeholders, amplifying our investments in platform capabilities and expertise as a part of a extra expansive community,” mentioned Philippe Krakowsky, Interpublic’s CEO. “Our two corporations have extremely complementary choices, geographic presence and cultures. We additionally share a foundational perception within the energy of concepts, enabled by expertise and knowledge. By becoming a member of Omnicom, we’re making a uniquely complete portfolio of companies that can make us essentially the most highly effective advertising and marketing and gross sales accomplice in a world that is altering at pace. We sit up for working with John and the whole Omnicom group.”
The stock-for-stock transaction is anticipated to be tax-free to each Omnicom and Interpublic shareholders and is anticipated to shut within the second half of 2025, topic to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and different customary circumstances. The mixed firm will retain the Omnicom identify and commerce underneath the OMC ticker image on the New York Inventory Change.
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