Omnicom Group and Publicis Groupe are to merge, creating the world’s largest communications, advertising, marketing and digital services company, with combined 2012 revenue of $22.7 billion / €17.7 billion. Based on closing prices on July 26, 2013, Publicis Omnicom Group will have a combined equity market capitalization of approximately $35.1 billion / €26.5 billion. The merged group will have more than 130,000 employees. The merger is expected to generate efficiencies of $500 million / €377 million.
The Publicis Omnicom Group will include BBDO, Saatchi & Saatchi, DDB, Leo Burnett, TBWA, Razorfish, Publicis Worldwide, Fleishman-Hillard, DigitasLBi, Ketchum, StarcomMediaVest, OMD, BBH, Interbrand, MSLGROUP, RAPP, Publicis Healthcare Communications Group (PHCG), Proximity, Rosetta, CDM, ZenithOptimedia and Goodby, Silverstein & Partners.
Maurice Lévy, Chairman and CEO of Publicis Groupe, said: “The communication and marketing landscape has undergone dramatic changes in recent years including the exponential development of new media giants, the explosion of Big Data, blurring of the roles of all players and profound changes in consumer behavior. This evolution has created both great challenges and tremendous opportunities for clients. John and I have conceived this merger to benefit our clients by bringing together the most comprehensive offering of analog and digital services. Equally important, it will offer our talented people new avenues for growth and success at the crossroads of strategic intelligence, creativity, science and technology.”
John Wren, CEO of Omnicom, said: “Both Maurice and I believe this new company reflects our vision of retaining the best talent, attracting an incredible roster of clients and leading innovation. Omnicom and Publicis Groupe are reshaping the industry by setting a new standard for supporting clients with integrated messaging across marketing disciplines and geographies. This combination will enable us to leverage the skills of our exceptionally talented people, our broad product offering, enhanced global footprint, and tremendous roster of global and local clients. In short, we believe this is a merger that will set our new company on a path to accelerated growth, with long-term benefits for clients, employees and shareholders.”
The Publicis Omnicom Group is being announced as a merger of equals. Publicis Groupe and Omnicom’s CEOs will lead the company as co-CEOs through an initial integration and development period of 30 months, following which Mr. Lévy will become non-executive Chairman and Mr. Wren will continue as CEO. The company will have a single-tier board with 16 members, consisting of the two co-CEOs and seven non-executive directors from each company.
For the first year following the closing of the transaction, Bruce Crawford, currently Omnicom Chairman, will be the non-executive Chairman of Publicis Omnicom Group. He will be succeeded by the current Publicis Groupe Chairperson, Elisabeth Badinter, as non-executive Chairperson for the second year following the closing of the transaction.
The transaction is a cross-border merger of equals under a holding company, Publicis Omnicom Group, in The Netherlands. The Group’s operational head offices will continue to be based in Paris and New York. The merger is expected to be tax-free to the shareholders of both companies. The transaction has been structured so that the shareholders of Publicis Groupe and Omnicom, after special dividends, will each hold approximately 50% of the equity of Publicis Omnicom Group. Publicis Groupe shareholders will receive one newly issued ordinary share of Publicis Omnicom Group for each Publicis Groupe share they own, together with a special dividend of €1.00 per share. Omnicom shareholders will receive 0.813 newly issued ordinary shares of Publicis Omnicom Group for each Omnicom share they own, together with a special dividend of $2.00 per share. In addition, Omnicom shareholders will receive up to two regular quarterly dividends of $0.40 per share if declared and the record date occurs prior to closing.
Publicis Omnicom Group is expected to be listed on the NYSE and Euronext Paris, traded under the symbol OMC, and to be included in the S&P 500 and CAC 40. The transaction is subject to approval by the shareholders of both companies as well as numerous regulatory approvals. It is expected to close in the fourth quarter of 2013 or the first quarter of 2014. Publicis Groupe and Omnicom have expressed the desire to have their shares start trading simultaneously on the day of announcement. As a consequence and because of the time difference, Publicis Groupe has asked Euronext Paris to postpone the trading of its shares to 9.30am New York time / 3.30pm Paris time.
Moelis & Company is financial advisor to Omnicom on the transaction. Rothschild is acting as financial advisor to Publicis Groupe. Legal advisors to Omnicom are Latham & Watkins LLP and De Brauw Blackstone Westbroek N.V. Legal advisors to Publicis Groupe are Wachtell, Lipton, Rosen & Katz; Darrois Villey Maillot Brochier; and NautaDulith N.V. Jones Day provided counsel to Moelis & Company.
USA, New York, NY and France, Paris
- Omnicom Media Group China acquires NIM DIGITAL Posted on April 19, 2012
- Omnicom Group’s Diversified Agency Services acquires The Modellers, marketing research firm Posted on February 9, 2011
- Omnicom Group’s Diversified Agency Services acquires licensing agency Nancy Bailey & Associates Posted on January 13, 2011
- Omnicom Group’s Diversified Agency Services acquires The Core, a UK design and communications agency Posted on November 3, 2010
- Omnicom Group’s Diversified Agency Services acquires Excerpta Medica Posted on October 20, 2010
- Omnicom acquires Sales Power Posted on October 20, 2010
- Publicis unveils €3 billion acquisition plan Posted on April 26, 2013
- Publicis Groupe to acquire Neev in India April 18, 2013
- Publicis Groupe acquires Convonix Posted on March 11, 2013
- Publicis Groupe acquires US digital agency Rokkan December 20, 2012
- Publicis Groupe acquires mobile agency Monterosa Posted on December 18, 2012
- Publicis Groupe acquires UK digital agency Outside Line Posted on December 13, 2012
- Publicis Groupe acquires AR New York Posted on December 10, 2012
- Publicis acquires iStrat and MarketGate in India Posted on December 10, 2012
- Publicis Groupe to acquire LBi for €416M Posted on September 21, 2012
- Publicis Worldwide in the USA, and the Kaplan Thaler Group to merge Posted on July 18, 2012
- Publicis Groupe becomes first communications group to enter the Palestinian market through acquisition of an equity stake in Zoom Advertising Posted on June 19, 2012
- Publicis Groupe Acquires Longtuo posted on May 14, 2012
- Publicis Groupe has acquired Indigo Consulting Posted on April 24, 2012
- Publicis Groupe acquires King Harvests and Luminous Posted on March 8, 2012
- Publicis Groupe acquires U-Link Business Solutions Posted on February 24, 2012
- Publicis Groupe full year and fourth quarter results Posted on February 10, 2012
- Publicis Groupe acquires The Creative Factory for Saatchi & Saatchi Russia Posted on January 25, 2012
- Publicis Groupe acquires Mediagong Posted on January 19, 2012
- Publicis Groupe acquires Gomye Posted on December 7, 2011
- Publicis Groupe acquires Chinese digital agency Wangfan Posted on November 2, 2011
- Publicis Groupe acquires Schwartz Communications Posted onSeptember 18, 2011
- Publicis acquires an equity stake in social media agency Big Fuel Posted on July 19, 2011
- Publicis Groupe acquires a majority stake in DPZ Posted on July 19, 2011
- Publicis Groupe takes a majority stake in longterm affiliate Spillmann/Felser/Leo Burnett Posted on July 6, 2011
- Publicis Groupe to acquire digital marketing agencies Rosetta Posted on May 19, 2011
- Publicis Groupe acquires Beijing-based Dreams Posted on May 12, 2011
- Publicis Groupe acquires Tailor Made April 29, 2011
- Publicis Groupe to acquire GP7 Posted on April 29, 2011
- Publicis Groupe takes a majority Stake in Brazil’s Talent Group Posted on April 21, 2011
- Publicis Groupe sells its stake in Freud Communications Posted on April 21, 2011
- Publicis Groupe acquires healthcare advertising agency Watermelon Posted on March 23, 2011
- Publicis Groupe acquires digital engagement agency Airlock Posted on March 10, 2011
- Publicis Groupe acquires Kitcatt Nohr Posted on March 3, 2011
- Publicis Groupe acquires Interactive Communications Ltd in Taiwan Posted on February 23, 2011
- Publicis Groupe acquires digital content and social media agency Holler for Leo Burnett Posted on February 17, 2011
- Publicis Groupe increases its stake in Wefcos Posted on January 28, 2011
- Publicis Groupe acquires Healthcare Consulting Posted on December 20, 2010
- Publicis Groupe takes majority stake in Brazil’s Andreoli MS&L Posted on December 16, 2010
- Publicis acquires interactive healthcare agency Digital District Posted on December 14, 2010
- Publicis Groupe acquires Eastwei Relations Posted on November 19, 2010
- Publicis acquires G4 Advertising in China Posted on August 29, 2010
- Publicis acquires Brazilian interactive agency AG2 Posted on August 29, 2010