Omnicom and IPG have confirmed today that their respective boards of directors have unanimously approved an agreement by which Omnicom will acquire Interpublic Group. Both advertising companies point out that the company resulting from the operation would represent the largest group of marketing talents in the industry and would bring together the widest and most innovative offering of services and products in marketing, advertising and communication.

According to the firms in the statement, the operation is based on “highly complementary core cultures and values“, including the “belief in the power of ideas enabled by technology and data”. They point out that they will have an unmatched portfolio of services that will boost customer opportunities and that the move will result in an industry-leading solution in the most comprehensive understanding of consumer behavior.

“Through this combination, we are poised to accelerate innovation and take advantage of the significant opportunities created by new technologies in this era of exponential change.“said John Wren, President and CEO of Omnicom. “Now is the perfect time to bring together our technologies, capabilities, talent and geographic presence to provide clients with superior data-driven results.“.

For his part, Philippe Krakowsky, Executive Director of Interpublic, has indicated that this is a strategic opportunity for its shareholders, talent and customers. “By joining Omnicom, we are creating a unique, comprehensive portfolio of services that will make us the most powerful sales and marketing partner in a rapidly changing world.”, he commented.

The result of the operation would result in a company with combined revenue of $25.6 billionbased on data from 2023. The companies expect the transaction to generate $750 million in annual cost synergies.

However, the move is still subject to approvals by shareholders of Omnicom, the world’s third largest advertising holding company, and Interpublic, the fourth largest holding company; and also other required regulatory approvals, as is usual in operations of this magnitude. If approved, the acquisition It would close in the second half of 2025.

As the two advertising groups point out in the statement, the resulting company would retain the Omnicom name and would trade under the symbol OMC on the New York Stock Exchange. John Wren would remain President and CEO of Omnicom; while Philippe Krakowsky and Daryl Simm – until now CEO of Omnicom Media Group – will serve as Co-Presidents and Chief Operating Officers of Omnicom.

The acquisition of IPG by Omnicom would bring together under the same structure the marketing, advertising and communication services of some of the largest global brands. If carried out, the agreement would mean the largest merger of agency holding companies in historysurpassing the acquisition of Aegis Group by the Japanese firm Dentsu in 2013, for around 4.9 billion dollars, according to AdAge.

The one confirmed today is not the first major agreement worked on by Omnicom to become the first global advertising firm. In 2013 a merger with Publicis was proposedwhich would have given a company with combined revenues of $23.8 billion, but which ultimately did not come to fruition.

The operation would place the resulting company as the first of the advertising holdings by revenue, above WPP, whose revenue in 2023 stood at $18.5 billion, and from Publicis, with 16,000 million dollars. The latter boasted last week, in the usual Christmas greeting starring Arthur Sadoun, that it would end 2024 being the first group by income.

Interpublic has in its group agencies McCann Worldwide or IPG Mediabrands; while Omnicom includes TBWA or OMD.

The agreement is a reflection of the process of transformation and disruption that the advertising industry has experiencedmainly due to the digitalization of advertising activity and the growth of large technology companies, such as Meta or Alphabet. It represents a strategic movement that seeks the survival of two of the four that until now have formed the so-called “Big Four”: WPP, Publicis, Omnicom and Interpublic.