Omnicom maintains its $13bn acquisition of The Interpublic Group of Companies – following regulatory approvals on both sides of the Atlantic – creates the world’s leading marketing and sales company “built for intelligent growth in the next era”.
The agency group is keen to stress that the deal, first proposed in December last year, will see the entire group powered by global marketing intelligence platform Omni, which has already helped Omnicom agencies, such as OMD, secure over $2.5bn in new business wins.
The platform uses data to help clients with tasks like creative solutions, media planning, and customer tracking, although quite how Interpublic-owned Acxiom will fit into this new era remains to be seen.
While many Interpublic creative agency brands are likely to be facing “rationalisation”, it would seem the deal will put Omnicom’s Precision Marketing Group, which includes Rapp, Targetbase, and Critical Mass, in a much stronger position.
OPMG, which waas launched in 2017, leads the group’s efforts on software development, CRM strategy, web platform and ecommerce optimisation, and experience design. Interpublic, meanwhile, has few agencies dedicated to customer experience agencies other than McCann and MRM.
Even so, ultimately, Omnicom claims the acquisition will “reimagine how data, creativity, and technology combine with exceptional talent to help clients address their most critical growth priorities”.
Omnicom chairman and CEO John Wren said: “This is a defining moment for our company and our industry. With the completion of the deal, Omnicom is setting a new standard for modern marketing and sales leadership — creating stronger brands, delivering superior business outcomes, and driving sustainable growth.
“We’re excited about this next chapter. I want to thank our people, clients, and shareholders for the trust they have placed in us.”
Under the terms of the agreement, Interpublic shareholders received 0.344 Omnicom shares for each share of Interpublic common stock they owned. Legacy Omnicom shareholders own approximately 60.6% of the combined company and legacy Interpublic shareholders own approximately 39.4%, on a fully diluted basis.
The combined company, with a pro forma combined revenue in excess of $25 billion, will trade under the OMC ticker symbol on the New York Stock Exchange.
While the company’s full leadership team will be revealed next week, as previously announced, Wren remains chairman and CEO, Phil Angelastro remains EVP and CFO, and Philippe Krakowsky and Daryl Simm serve as co-presidents and chief operating officers.
Krakowsky, Patrick Moore and E Lee Wyatt Jr have also joined the Omnicom board of directors.
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