The boards of Omnicom and The Interpublic Group (IPG) have approved an agreement for Omnicom to acquire IPG, creating a global giant in the marketing space.

Omnicom's stable of PR brands includes FleishmanHillard, Ketchum and Porter Novelli, while IPG's PR family tree includes The Weber Shandwick Collective and Golin, to name a few.

The stock-for-stock deal is expected to close in the second half of 2025, with the two companies posting combined revenues in 2023 of US$25.6 billion. In an announcement, the companies said the deal is expected to generate US$750 million in annual cost synergies, though there is no indication at this stage of where the cost synergies will be achieved, and whether or how the combined entity's PR agencies will be impacted.

Chairman and CEO of Omnicom, John Wren, said: "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."

Interpublic CEO, Philippe Krakowsky, added: "This combination represents a tremendous strategic opportunity for our stakeholders, amplifying our investments in platform capabilities and talent as part of a more expansive network.

"Our two companies have highly complementary offerings, geographic presence and cultures. We also share a foundational belief in the power of ideas, enabled by technology and data."

Philippe and IPG's COO, Daryl Simm, will serve as Co-Presidents and COOs of the new organisation, which will retain the Omnicom name.