Omnicom announced Monday morning that it will acquire Interpublic Group (IPG), which would be the largest merger in advertising industry history.
The boards of directors of both companies unanimously agreed to the all-stock transaction, which will create a combined company that will operate under the Omnicom name and have annual revenues of more than $25 billion based on 2023 financials.
The companies said in a joint statement that the merger is expected to generate annual cost synergies of $750 million.
The transaction is subject to Omnicom and IPG shareholder and regulatory approval and is expected to close in the second half of 2025.
Pending approval, Omnicom Chairman and CEO John Wren will remain in his position, as will Chief Financial Officer Phil Angelastro. IPG CEO Philip Krakowski will serve as co-president and chief operating officer of the new company, along with Omnicom's Darryl Sim.
Following the merger, Mr. Krakowski will also serve as co-chair of the integration committee and will join IPG's board of directors along with two other IPG directors.
“Through this combination, we are poised to accelerate innovation and take advantage of the significant opportunities created by new technologies in an era of exponential change,” Wren said in a statement. “Now is a great time to bring together our technology, capabilities, talent and geographic footprint to deliver superior data-driven outcomes for our clients. We are excited to welcome Philip and the entire Interpublic team to the Omnicom family. I'm excited about it.”
Krakowski added that the two major agencies have complementary offerings, geographic presence and culture.
“We also share a fundamental belief in the power of ideas enabled by technology and data,” he said. “By joining Omnicom, we are building a unique and comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a rapidly changing world. We look forward to working with John and the entire Omnicom team. looking forward to it.”
Many health institutions integrated
If approved, the merger would combine two of the advertising industry's biggest names and create a formidable competitor to rival holding companies Publicis Groupe and WPP.
The merger will also bring numerous healthcare marketing agencies under one roof, including several MM+M Agency 100 honorees.
For example, Omnicom Health Group (OHG) includes consulting and research firms such as Archbow Consulting and The Planning Shop, as well as Medicom shops such as Healthcare Consultancy Group.
The company's patient advocacy and clinical trial management services include MMG, and its market access capabilities are powered by Entrée Health.
OHG's creative and media roster includes Biolumina, Patients & Purpose, SSCG Media Group, TBWA\WorldHealth, and more.
As for IPG, its IPG Health division includes full-service agencies such as Area 23, FCBCure, FCB Health New York, Humancare, Neon, and Rise & Run. The company's medical communications division includes entities such as Area 23 on Hudson, CMC Affinity, and ProHealth.
IPG's medical specialty organizations include McCann Global Health, Mosaic Group, Solve(d), and Yuzu Yello. We also have IPG Dxtra Health services from Golin Health, R/GA Health, Jack Health, and Weber Shandwick.
In addition, IPG has a center of excellence (COE) within IPG Mediabrands, Mediabrands Health, which launched in late August.
The joint release details what the new Omnicom's leadership will look like, but questions remain about what the healthcare marketing agency's leadership structure will look like.
OHG is currently led by CEO Matt McNally and IPG Health is overseen by Dana Mayman. MM+M has reached out to Messrs. McNally and Meiman for comment on the merger.
The Omnicom-IPG deal was preceded by media reports that the two companies were in advanced talks to form a partnership, as well as speculation that another competitor was on the move. .
The merger was announced a week after rumors emerged that Publicis was preparing a bid for IPG. Representatives from both companies denied the rumors at the time.
Notably, Publicis and Omnicom pursued a $35 billion merger more than a decade ago, but ultimately called off the deal in 2014.
