Omnicom Closes $13B IPG Deal, Uniting Rivals in Industry-Shaping Acquisition

Practically a yr after asserting the deal, Omnicom has formally closed its $13.5 billion acquisition of Interpublic Group, creating the world’s largest promoting and advertising and marketing holding firm by income and billings.Beneath the all-stock settlement, Omnicom shareholders will personal 60.6% of the mixed firm’s inventory, and IPG shareholders 39.4%. Mixed, the businesses posted an estimated $26 billion in annual income in 2024.John Wren will stay chairman and CEO of the corporate, whereas Phil Angelastro stays on as evp and CFO, and former IPG CEO Philippe Krakowsky and Daryl Simm will function co-presidents and COOs. “It is a defining second for our firm and our business,” stated John Wren, Chairman and CEO of Omnicom, in an announcement. “With the completion of the deal, Omnicom is setting a brand new normal for contemporary advertising and marketing and gross sales management–creating stronger manufacturers, delivering superior enterprise outcomes, and driving sustainable development. We’re enthusiastic about this subsequent chapter. I need to thank our individuals, shoppers, and shareholders for the belief they’ve positioned in us.”  First introduced in December 2024, the acquisition cleared its final regulatory hurdle earlier this week when the European Fee granted approval. The EU’s choice got here two months after the U.S. Federal Commerce Fee cleared approach for the deal to shut in September, with a consent decree prohibiting Omnicom from directing advertiser spend primarily based on political or ideological preferences.The mix of two rival holdcos will remap the worldwide company panorama. The closest historic precedent was the proposed 2013 merger between Publicis and Omnicom, which in the end collapsed over management disagreements.By buying IPG, Omnicom is scaling up on information and expertise to raised serve its enterprise shoppers throughout the advertising and marketing funnel and compete in a consolidating media panorama. It’s a shift has already pushed rival holding corporations to simplify and put money into information and tech over the previous decade. Omnicom has projected $750 million in price synergies on account of the mix. To get there, thus far, IPG has eradicated 3,200 jobs since January, Omnicom culled 3,000 jobs on the finish of final yr. CEO John Wren has emphasised that Omnicom is working to maintain client-facing groups intact, whereas back-office roles usually tend to be affected.As the brand new Omnicom takes form, it must rigorously navigate new shopper conflicts. It now works with fierce rivals throughout classes, equivalent to AT&T and T-Cell in telco, or State Farm and GEICO in insurance coverage.Cautious change administration may even be key, as it’s broadly anticipated that not the entire companies will survive below their new mother or father. Final month, experiences circulated that Omnicom will get rid of its international DDB community; in November, international CEO Alex Lubar Left the company with out plans to backfill his function.