Omnicom’s $9bn Acquisition of Interpublic Group
- Álvaro Aguilar de Nalda
- 5 hours ago
- 4 min read
By Alexander Svanidze, Ava Singer, Ryan Leo, Julianna Zelnhefer (Boston University); Alvaro Aguilar De Nalda; Rasmus Sjögren, Alexander Henje, Haris Jasarevic, Nikolas Kakona (SSE)
Photo: Quick PS (Unsplash)
Overview of the deal
Acquirer: Omnicom Group
Target: Interpublic Group
Implied Equity Value: $13.25 billion USD
Total Transaction Size: $13.25 billion USD
Closing Date: November 26, 2025
Target Advisor: Morgan Stanley (Financial), Willkie Farr & Gallagher LLP (Legal)
Acquirer Advisor: PJT Partners (Financial), Latham & Watkins LLP (Legal)
On 9 December 2024, Omnicom and Interpublic agreed on a definitive agreement for Omnicom to acquire Interpublic in an all-stock transaction. Under the deal, each Interpublic share would be exchanged for 0.344 Omnicom shares, giving legacy Omnicom shareholders roughly 60.6% and Interpublic shareholders 39.4% of the combined company.
With the closing on 26 November 2025, the merged entity becomes the world’s largest marketing and sales holding company, with pro forma combined revenue exceeding US$25 billion.
The rationale for the acquisition centers on combining complementary strengths, where Omnicom’s established global media and advertising infrastructure together with Interpublic’s data, technology, and precision marketing capabilities will help build an integrated, next generation marketing and sales powerhouse. By uniting creativity, data, technology and talent under one roof, the merged company aims to benefit from economies of scale, enhanced media buying power, expanded service offerings, and improved competitive positioning. This being particularly relevant amid the rapid evolution of digital marketing, data-driven advertising, and AI-enabled marketing tools.
“With an overwhelming majority voting in favor of the transaction, it is clear that our stockholders see the immense opportunity of Interpublic joining forces with Omnicom.” Philippe Krakowsky - CEO (Interpublic)
Company Details (Acquirer - Omnicom)
Omnicom Group is a leading global media, marketing, and corporate communications holding company. It serves more than 5,000 clients across over 70 countries, offering services in advertising, media buying, precision marketing, public relations, branding, digital commerce, healthcare marketing, and more. In 2024, Omnicom generated roughly USD $15.7 billion in revenue and employed about 75,000 professionals worldwide, underscoring its scale and global reach.
Founded: 1944
Headquartered: New York, USA
CEO: John Wren
Number of employees: 75,000
Market Cap*: $22.73 billion USD
EV*: $26.39 Billion USD
LTM Revenue*: $16.07 billion USD
LTM EBITDA*: $2.58 billion USD
LTM EV/Revenue: 1.64X
LTM EV/EBITDA: 10.22X
Recent Transactions: Flywheel Digital ($835 MUSD) and LeapPoint (undisclosed)
*As of 1/12/2025
Company Details (Target - Interpublic Group)
Interpublic Group is an advertising and marketing services company that offers digital marketing, public relations, and other communication services. The company has roots tracing back to 1930 with precursor agencies.
Founded: 1961
Headquartered: New York, USA
CEO: Philippe Krakowsky
Number of employees: 53,000
Market Cap*: $8.93 billion USD
EV*: $11.60 billion USD
LTM Revenue*: $8.74 billion USD
LTM EV/Revenue: 1.33X
*As of 28/11/2025
Projections and Assumptions
Short-Term Consequences
In the immediate period following the acquisition, the combined Omnicom Interpublic entity will primarily focus on integration, cost realisation, and initial revenue synergies. The most immediate consequence is organisational restructuring. Overlapping agencies in creative, media, and digital services are being consolidated into fewer global networks, and this process brings more than 4000 headcount reductions, selective office closures, and realignment of senior leadership roles. These actions aim to begin capturing the roughly USD 750 million in annual cost synergies that management has targeted, although they likely temporarily disrupt internal workflows and client relationships.
Financially, early benefits are expected to come from increased media buying leverage, cross-selling across complementary services, and the initial integration of the companies’ data and AI platforms. These effects remain incremental for now but lay the groundwork for longer-term margin expansion and growth.
Initial market reaction to the merger was broadly positive. Analysts noted that the deal creates the largest global marketing and sales holding company, with more than USD 25 billion in combined revenue, positioning the organisation to compete more effectively against technology platforms and independent consultancies. Investor sentiment reflected confidence in Omnicom’s ability to extract synergies and leverage IPG’s data assets, particularly Acxiom, to strengthen its technology-driven capabilities. This early endorsement provided momentum despite short-term operational challenges.
Long-Term Upsides
This merger is creating the world’s largest ad-holding group. The combined company will have a combined 2023 revenue of $25.6 billion and free cash flow of $3.3 billion. Omnicom expects combined annual cost synergies of $750 million which in the long term can boost the company’s financial performance. The combined talent pool and scale of this deal lets Omnicom unlock many synergies which would secure them in the industry at a rocky time where shifting technology and consumer behavior are affecting the ad business model. The new Omnicom will also be able to unlock synergies in the combination of IPGs AI and data enabled marketing models. Long term, Omnicom is expected to lean heavier and heavier into technological investment and ai marketing.
Risks and Uncertainties
Although Omnicom has completed its acquisition of Interpublic Group, the consolidated company still faces a broad set of material risks and uncertainties that could undermine anticipated synergies, financial returns, and long-term strategic value. Since the acquisition, Omnicom announced an entirely new structure and leadership team. However, as part of the restructuring, an estimated 4,000 positions will be eliminated globally, and long-standing agency brands from IPG will be retired. With such extreme restructuring, loss of institutional knowledge, morale issues, and disrupted workflows could decrease the value of the acquisition over time. These structural changes have also triggered uncertainty among clients. Several major accounts are reportedly up for review because of confusion over the merged structure, with some clients described as “jittery.” Clients are unsure how service delivery will change under the new combined entity. According to internal sources, the new Omnicom has already reduced benefits for US-based employees, including cuts to retirement plans, parental leave, healthcare, severance, holidays, and PTO. The merger rationale included achieving cost savings by consolidating overlapping roles and operations. However, with staff cuts, agency closures, and client unease, there is a real risk that those anticipated savings may come at the expense of talent loss, reduced service quality, client turnover, and ultimately, failure to realize the full value from the transaction.
“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.” John Wren - CEO (Omnicom)