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Omnicom Group confirms acquisition of competitor Interpublic Group. The latter will be delisted. The merger of the companies will create the world's largest agency group for marketing and communications.

Completion of the acquisition will create a group with over one hundred thousand employees, combined revenue of $25.6 billion (2023), profit (ebitda) of $3.9 billion and free cash flow of $3.3 billion.

Omnicom shareholders will own 60.6 percent of the combined company and Interpublic shareholders will own 39.4 percent.

The combined revenue in 2023 was 57 percent in the U.S.

The companies say they are highly complementary in terms of services, geography and their cultures. The transaction is expected to generate annual cost synergies of 750 million.

IPG's stock market listing disappears. John Wren will remain CEO of the new Omnicom(labels).

The transaction is funded entirely by a share swap. Investors are not impressed with the merger. Omnicom shares fell ten percent last six months and are now a fraction of a percent in the plus.

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