Omnicom Group Inc. (OMC) entered a merger agreement on December 9, 2024, to acquire rival The Interpublic Group of Companies, Inc. (IPG) for $16.72 billion in an all-stock deal.
As per the merger agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. The deal is valued at about $31.93 per share, representing a premium of 21.60 % from the stock’s last close.
Interpublic is a provider of advertising and marketing services, offering consumer advertising, digital marketing, media buying, public relations, and data-driven solutions through renowned brands like McCann, FCB, and Weber Shandwick.
Omnicom is a provider of data-driven, creative marketing and sales solutions, offering services in advertising, media planning, public relations, healthcare marketing, and more to over 5,000 clients across 70+ countries.
The deal will create the world’s largest advertising agency as traditional industry players strive to better compete with Big Tech firms, driven by the accelerating adoption of AI.
The deal aims to merge Omnicom, the world’s third-largest ad buyer, with Interpublic, the fourth-largest, which would potentially draw regulatory scrutiny.
John Wren will continue as Chairman and CEO of Omnicom, with Phil Angelastro remaining as EVP and CFO. Philippe Krakowsky, current CEO of Interpublic, and Daryl Simm will take on roles as Co-Presidents and COOs of Omnicom, with Krakowsky also serving as Co-Chair of the Integration Committee following the merger. Additionally, three current members of Interpublic’s Board of Directors, including Philippe Krakowsky, will join the Omnicom Board.
Omnicom is acquiring Interpublic at 7.94 times its EBITDA.
For more in-depth insights into this merger and acquisition transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of The Interpublic Group of Companies, Inc. (IPG) by Omnicom Group Inc. (OMC)
The Deal Metrics page offers a comprehensive overview of the merger, including:
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Editor’s Note: Baranjot Kaur contributed to this article