FX.co ★ Omnicom To Acquire Interpublic In Stock-for-stock Deal

Omnicom Group, Inc. (OMC) and The Interpublic Group of Companies, Inc. (IPG) have disclosed that their Boards of Directors have unanimously sanctioned a definitive agreement, which stipulates that Omnicom will acquire Interpublic through a stock-for-stock merger.

This strategic alliance will enhance the firms' ability to offer comprehensive full-funnel solutions, aimed at delivering superior outcomes for their most sophisticated clients globally.

According to the agreement, Interpublic shareholders are set to receive 0.344 shares of Omnicom for each share of Interpublic common stock they hold.

Post-transaction, Omnicom shareholders will possess 60.6% of the newly combined entity, with Interpublic shareholders holding the remaining 39.4%, calculated on a fully diluted basis. The merger is anticipated to generate annual cost synergies of $750 million and is expected to increase the adjusted earnings per share for shareholders of both Omnicom and Interpublic.

John Wren will continue his role as Chairman and CEO of Omnicom, and Phil Angelastro will remain the Executive Vice President and CFO of Omnicom. Philippe Krakowsky and Daryl Simm will take on the roles of Co-Presidents and Chief Operating Officers of Omnicom.

Additionally, Krakowsky will serve as Co-Chair of the Integration Committee following the merger. Three existing members of the Interpublic Board of Directors, including Philippe Krakowsky, will join the Omnicom Board of Directors.

The proposed stock-for-stock merger is planned to be tax-neutral for both Omnicom and Interpublic shareholders and is slated for completion in the latter half of 2025. This is contingent upon approvals from shareholders of both companies, necessary regulatory consents, and other usual conditions.

The merged entity will retain the Omnicom name and will continue to trade under the OMC ticker on the New York Stock Exchange.