Omnicom to buy Interpublic, creating ad agency giant with nearly $26 billion in annual revenue

Omnicom is shopping for Interpublic Group in a stock-for-stock deal that can create an promoting powerhouse with mixed annual income of virtually $26 billion.

The New York Metropolis companies have had a hand in iconic advertising and marketing campaigns like “Bought Milk” for the California Milk Processor Board, “Priceless” for Mastercard, “As a result of I am Value It” for L’Oreal and “Suppose Totally different” for Apple.

The mixed firm shall be value greater than $30 billion.

Shareholders of The Interpublic Group of Corporations will obtain 0.344 Omnicom shares for every share of Interpublic widespread inventory that they personal. Omnicom shareholders will personal 60.6% of the mixed firm and Interpublic shareholders will personal 39.4% after the transaction is full.

“Our two firms have extremely complementary choices, geographic presence and cultures,” Interpublic CEO Philippe Krakowsky stated in a press release. “We additionally share a foundational perception within the energy of concepts, enabled by expertise and knowledge.”

The corporate will preserve the Omnicom identify and commerce beneath the “OMC” ticker image on the New York Inventory Change.

John Wren will stay as chairman and CEO of Omnicom, whereas Phil Angelastro will proceed as govt vp and chief monetary officer of Omnicom. Krakowsky and Daryl Simm will function co-presidents and chief working officers of Omnicom.

Three present members of Interpublic’s board, together with Krakowsky, will be a part of the board of Omnicom.

The deal is predicted to have annual value financial savings of $750 million and is predicted to shut in the course of the second half of subsequent yr. It nonetheless wants the approval of Omnicom and Interpublic shareholders.

Shares of Interpublic jumped greater than 13% earlier than the market open on Monday, whereas Omnicom’s inventory fell greater than 3%.