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Omnicom Buying Interpublic Group
Dec 10, 2024 (MENAFN via COMTEX) --
(MENAFN - Baystreet) Omnicom (NYSE:OMC) is buying Interpublic Group (NYSE:IPG) in a stock-for-stock deal that will create an advertising powerhouse with combined annual revenue of almost $26 billion.
Shareholders of The Interpublic Group of Companies Inc. will receive 0.344 Omnicom shares for each share of Interpublic common stock that they own. Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4% after the transaction is complete.
The combined company will keep the Omnicom name and trade under the"OMC" ticker symbol on the New York Stock Exchange.
The deal is expected to have annual cost savings of $750 million.
The transaction is targeted to close during the second half of next year. It still needs the approval of Omnicom and Interpublic shareholders.
"This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth," said John Wren , Chairman & CEO of Omnicom.
"Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family."
Shares of IPG jumped $2.86, or 9.5%, to $32.12 soon after the market open on Monday, while OMC stock fell $7.28, or 7%, to $96.14.
Shareholders of The Interpublic Group of Companies Inc. will receive 0.344 Omnicom shares for each share of Interpublic common stock that they own. Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4% after the transaction is complete.
The combined company will keep the Omnicom name and trade under the"OMC" ticker symbol on the New York Stock Exchange.
The deal is expected to have annual cost savings of $750 million.
The transaction is targeted to close during the second half of next year. It still needs the approval of Omnicom and Interpublic shareholders.
"This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth," said John Wren , Chairman & CEO of Omnicom.
"Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family."
Shares of IPG jumped $2.86, or 9.5%, to $32.12 soon after the market open on Monday, while OMC stock fell $7.28, or 7%, to $96.14.
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COMTEX_460678934/2604/2024-12-10T04:15:38