O Omnicom Group announced this Monday (9) a share exchange agreement for the purchase of Interpublic Group of Companies (IPG), a business that will create the largest advertising conglomerate in the world.
According to a joint statement, the combined company will have net revenue estimated at more than US$25 billion (2023 data) and will include historic agencies such as TBWA Worldwide e McCann Worldgroup.
Its client lists include clients the size of Amazon, AT&T, PepsiCo, Unilever e Volkswagen.
In Brazil, the group controls the Africa, DM9, CDN, AlmapBBDO, Interbrand, Lew’Lara/TBWA e Ketchumamong others.
Under the terms of the agreement, Interpublic shareholders will receive 0.344 shares of Omnicom for each share of Interpublic common stock they own.
Upon closing 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.
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The transaction is expected to generate annual cost synergies of US$750 million.
The new Omnicom will have more than 100,000 specialized professionals and the company will provide end-to-end services in media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding, the release says
“This strategic acquisition creates significant value for both sets of shareholders by combining highly complementary, world-class data and technology platforms, enabling new offerings to better serve our customers and drive growth,” said John Wren, president and CEO of Omnicom .
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“This combination represents a tremendous strategic opportunity for our stakeholders, expanding our investments in platform resources and talent as part of a broader network,” said Philippe Krakowsky, CEO of Interpublic.
The share exchange is expected to be tax-free for Omnicom and Interpublic shareholders and is expected to be completed in the second half of 2025, following shareholder and regulatory approvals.
The combined company will retain the Omnicom name and trade under the symbol OMC on the New York Stock Exchange.
