Omnicom: to acquire Interpublic through exchange offer

(CercleFinance.com) - Omnicom, the US leader in advertising, announced on Monday morning that it had reached an agreement to acquire its competitor Interpublic in an all-stock transaction.


Under the terms of the public exchange offer (PEO), Interpublic shareholders will receive 0.344 ordinary shares for each share held.

On completion of the transaction, Omnicom shareholders will control 60.6% of the new entity, while Interpublic shareholders will hold 39.4%.

The combination - which is expected to generate annual cost synergies of $750m - will employ over 100,000 people in fields ranging from advertising and marketing to public relations, customer experience and data analytics.

John Wren, Omnicom's current CEO, will retain his position at the helm of Omnicom, while Philippe Krakowsky, the current head of Interpublic, will become co-CEO alongside Daryl Simm.

With the acquisition of Interpublic, Omnicom will increase its annual sales to $25.6bn.

By way of comparison, the annual sales of the UK's WPP, another of the 'Big Six' players in advertising, are close to $19bn, while those of France's Publicis are just under $16bn.

Following this announcement, Interpublic's share price were jumping over 14% in pre-market trading on the New York Stock Exchange on Monday, while Omnicom's share price was expected to fall by 2.5%.


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