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Tag: John Wren

  • Omnicom group to acquire Interpublic group; definitive agreement signed

    Omnicom group to acquire Interpublic group; definitive agreement signed

    MUMBAI: The merger did happen. Just as Wall Street Journal had predicted. 

    Omnicom  and The Interpublic group today announced their boards have unanimously approved a definitive agreement pursuant to which Omnicom will acquire Interpublic in a stock-for-stock transaction. The combined company will bring together the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform. Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients.

    Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close of the transaction, Omnicom shareholders will own 60.6 per cent of the combined company and Interpublic shareholders will own 39.4 per cent, on a fully diluted basis. The transaction is expected to generate annual cost synergies of $750 million.

    The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.

    “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,” said Omnicom chairman & CEO John Wren. “Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family.”

    “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,” said Interpublic CEO Philippe Krakowsky. “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. By joining Omnicom, we are creating a uniquely comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a world that’s changing at speed. We look forward to working with John and the entire Omnicom team.”

    Transaction Highlights
    * Highly complementary assets create an unmatched portfolio of services 
    and products that expands client opportunities for each company on day one
    * Omnicom and Interpublic share highly complementary cultures and core values including a foundational belief in the power of ideas enabled by technology and data
    * Creates an industry leading identity solution with the most comprehensive understanding of consumer behaviors and transactions, enabling us to deliver superior outcomes for our clients at scale and speed
    * Advances our ability to continually innovate and develop new products and services, providing higher ROI on marketing spend
    * Significant free cash flow provides greater capacity for internal investments and acquisitions.

    Leadership & Governance

    John Wren will remain chairman & CEO of Omnicom. Phil Angelastro will remain EVP & CFO of Omnicom. Philippe Krakowsky and Daryl Simm will serve as co-Presidents and COOs of Omnicom. Krakowsky will also be co-Chair of the integration committee post-merger. Three current members of the Interpublic board of directors, including Philippe Krakowsky, will be welcomed to the Omnicom board of directors.

    Transaction Details and Financial Profile

    The transaction is expected to generate $750 million in annual cost synergies and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders. Omnicom will have an attractive pro forma financial profile:
    * Combined 2023 revenue of $25.6 billion, Adjusted EBITA of $3.9 billion and free cash flow of $3.3 billion
    * Combined 2023 revenue of 57 per cent US and 43 per cent nternational
    * Strong balance sheet, commitment to investment grade rating with combined debt to EBITDA ratio of 2.1x before the benefit of synergies
    * Omnicom will continue its practice for use of free cash flow: dividends, acquisitions and share repurchases
    * Both Omnicom and Interpublic will maintain their current quarterly dividend through the closing of the transaction

    The stock-for-stock transaction is expected to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and other customary conditions.

    The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York stock exchange.

  • Omnicom expands with four centres in India

    Omnicom expands with four centres in India

    Mumbai: Omnicom (NYSE:OMC) announced the expansion of its Global Solutions Centers of Excellence with the opening of three new campus locations in Bengaluru, Chennai, and Gurugram. A fourth location will be opened in Hyderabad in October. This significant investment reaffirms Omnicom’s commitment to expanding its presence in India’s fast-growing economy, tapping into its diverse talent, and continuing to drive innovation and enhance client services across the company.

    Designed to accommodate Omnicom’s expanding footprint and global client solutions capabilities, these centres of excellence will house a diverse talent pool of over 5,500 colleagues. The newly built, state-of-the-art offices will provide best-in-class collaborative environments for Omnicom’s talent in India. Through their expertise in media, data and analytics, creative, digital commerce, marketing technology, and AI, Omnicom’s Global Solutions Centers will support our agencies around the world, driving more value and efficiencies for our clients.

    “India is a country of creativity and technology with diverse, dynamic and talented people,” said Omnicom chairman and CEO John Wren. “Our India operations are helping us transform from within, improving our client offerings and providing operating efficiencies. We are rapidly scaling and will continue to increase the number of colleagues in Omnicom’s Global Solutions Centers over the next few years, making them a key component of Omnicom’s growth.” 

  • Omnicom names DDB’s Aditya Kanthy CEO of Omnicom Advertising Services in India

    Omnicom names DDB’s Aditya Kanthy CEO of Omnicom Advertising Services in India

    Mumbai: Omnicom chairman and CEO John Wren has named Aditya Kanthy as CEO of the newly formed Omnicom Advertising Services group in India. Kanthy will oversee Omnicom’s creative agencies in the region, focusing on talent, cross-agency collaboration, and innovation to drive growth in one of the company’s fastest-growing markets. The respective creative agencies within the group – DDB, BBDO and TBWA – will maintain their current branding in the Indian market.

    Omnicom Advertising Services will bring together the power of Omnicom to provide exceptional integrated solutions to meet the needs of clients in India. The group will capitalize on the top talent housed within its leading networks and work in partnership with other Omnicom agencies, such as Omnicom Media Group, to further strengthen Omnicom’s comprehensive offering in India. Omnicom recently announced the creation of large global capability centers with four campuses out of Bangalore, Hyderabad, Chennai, and Gurgaon.

    “This year India will become the most populous nation on the planet. It is an important growth engine for Omnicom. By centralizing the leadership of three creative powerhouses under Aditya, we will continue to build on our agencies’ strong foundations to deliver a wider breadth of capability and scale for our clients,” said Omnicom chairman and CEO John Wren. “Aditya brings deep experience to the newly created Omnicom Advertising Services, and our India operations is primed to thrive under his leadership.”

    Kanthy, currently CEO of DDB Mudra Group, began his career in Mudra in 2003 as a strategic planner, taking on various responsibilities over the years including Chief Strategy Officer, a role in which he helped shape India’s most successful independent advertising agency into an Omnicom-owned integrated marketing communications group. As the new leader of Omnicom Advertising Services India, he will further strengthen Omnicom’s presence and ensure all of our capabilities are extended to our top clients.

    Speaking about this development, Aditya Kanthy said, “Omnicom is the most creative global network in the world. Our agencies represent the enduring power of creativity to build brands and businesses. I look forward to bringing the might of the Omnicom network to clients in India and continue to attract the best creative talent in one of the most exciting markets in the world.”

  • Omnicom elevates Alex Lubar to global CEO of DDB Worldwide

    Omnicom elevates Alex Lubar to global CEO of DDB Worldwide

    Mumbai: Omnicom chairman and CEO John Wren has elevated Alex Lubar as global CEO of DDB Worldwide. Lubar succeeds current global CEO Marty O’Halloran who will continue as chairman. In addition, Glen Lomas currently CEO, DDB EMEA, based in London, becomes global president and chief operating officer in partnership with Alex.

    “We are pleased to announce these changes as DDB has reclaimed its title of being one of the top creative agencies in the world, including 2023 Cannes Network of the Year,” said Omnicom chairman and CEO John Wren. “Marty’s dedication to DDB has made him an integral part of the network’s culture and operations, and we thank him for his strong leadership during the past four years as CEO. With extensive global leadership credentials within the industry, we are confident that Alex, supported by Glen, will continue to elevate the network and build upon its legacy of creative excellence.”

    Lubar was appointed president and chief operating officer of DDB Worldwide last October 2022, following ten years at McCann. He held several regional leadership roles during the course of his time there including President, McCann North America, head of McCann’s Asia Pacific region, and CEO of McCann London.

    Said Lubar about his new role, “Since its inception, DDB has unlocked the power of human emotion to make millions of different people change how they behave, feel, and transact with brands and businesses around the world. We believe that creativity, in all its modern forms, has the power to profoundly transform our clients’ businesses. I am honored to have the opportunity to lead Bill Bernbach’s legacy into the future with such a talented global staff and leadership team who all share the same vision.”

    Lomas has unparalleled international client experience at DDB having been CEO of Europe, Middle East, and Africa, DDB’s largest region and with the network since 1995. Based in London, he is responsible for the EMEA region and has built successful client teams across geographies while creating an environment where creativity and effectiveness flourish across the network.

    Said Lomas about his appointment, “It has always been a privilege to work at DDB and it is a great honor to take on this role. DDB has always been where brilliant, unpretentious people turn up each day to apply their creativity to solving problems. The problems and solutions change, but that culture doesn’t. I love what this network is capable of when it comes together, as demonstrated this year at Cannes, and Alex and I are here to ensure that spirit continues and the network keeps evolving to attract the most ambitious talent and clients.”

    O’Halloran has been a leader within the DDB network for close to four decades and took over the role of global CEO in 2020. Under his leadership, DDB won 2023 Network of the Year at Cannes, Network of the Year for the past 3 years at D&AD, and Network of the Year at Effie US and Latina.

    “It has been my honor to lead DDB over the past four years,” said O’Halloran. “The talent across our regions is incredible and together we’ve been able to produce work that has achieved transformative results for our clients and has been awarded as some of the best creativity in the world. As part of this orchestrated succession plan, there is no doubt in my mind Alex will continue to lead the DDB network to new heights. I look forward to working in a chairman’s capacity with Alex and Glen as they partner in leading the way forward with their global leadership team.”

  • Omnicom bags top honors at 2015 Spikes Asia Festival

    Omnicom bags top honors at 2015 Spikes Asia Festival

    MUMBAI: Omnicom agencies took the top honours at the annual Spikes Asia Festival of Creativity. BBDO received the night’s top honor, Network of the Year, for the second consecutive year, with DDB placing third. The award comes on the heels of BBDO winning the Cannes Lions APAC Network of the Year.

     

    On the other hand, Colenso BBDO won Agency of the Year and DDB Group New Zealand placed third. OMD China was among the top three Media Agencies of the Year.

     

    In total, over 40 Omnicom agencies in 12 countries contributed to nearly 150 Spike awards. More than any other holding company, Omnicom agencies won four Grand Prix awards in Design, Digital, Direct, and Promo and Activation, as well as three Creative Effectiveness awards.

     

    Colenso BBDO’s ‘Reduce Speed Dial’ innovative campaign for Volkswagen was a multiple award-winner taking the top prize in Digital and Direct. WhybinTBWA won a Grand Prix and two Golds for their ‘It’s Your Call’ campaign for 3AW. DDB Group New Zealand was among the top three agencies and won two Grand Prix awards, the highest honour, in Design, Promo and Activation.

     

    “Omnicom once again had a great showing at Spikes and it’s especially gratifying to see our networks and agencies continue their winning streak in an incredibly competitive region. I am extremely proud of the recognition, the work that earned it, and the people that made it happen,” said Omnicom Group president and CEO John Wren.

  • Publicis-Omnicom’s $35 billion merger terminated

    Publicis-Omnicom’s $35 billion merger terminated

    MUMBAI: Paris based Publicis Groupe and New York based Omnicom Group have decided to part ways. The duo through a press statement has jointly announced that they have terminated their proposed merger of equals by mutual agreement, in view of difficulties in completing the transaction within a reasonable timeframe. With this announcement the proposed $35 billion merger has come to an end.

     

    A statement released by Publicis Groupe and Omnicom Group states, “The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.”

     

    This decision was unanimously approved by the Management Board and the Supervisory Board of Publicis Groupe and the Board of Directors of Omnicom. In a joint statement, Publicis Groupe chairman and CEO Maurice Lévy and Omnicom Group president and CEO John Wren stated, “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders. We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another.”

     

    The announcement comes after the meeting of the Supervisory Board of Publicis Groupe, chaired by Madame Elisabeth Badinter which was held on 8 May in order to decide on the action to be taken regarding the proposed merger of equals with Omnicom Group.

     

    The Supervisory Board examined the recommendation of the Management Board, which has unanimously voted to terminate the proposed merger of equals between Publicis Groupe and Omnicom Group.

     

    Lévy in an earlier statement said, “The two groups each have a brilliant track record. This merger was always one of opportunity, not necessity. The teams at Publicis Groupe worked diligently to complete the merger, but, in view of the obstacles encountered, the execution risk continued to increase. The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one. Prolonging the situation could have led to the diversion of the Group’s management from its principle function: to best serve our clients. Our paths diverge today with mutual respect. Publicis Groupe will continue to pursue and accelerate the implementation of its ambitious strategic plan for 2018. I am very confident in our ability to successfully see this through and to achieve all our goals.”

     

    The deal which came in the limelight in July, if worked out, would have created the world’s largest advertising holding company, impacting mostly the Chicago advertising market. The planned merger had called for a 50-50 ownership split of the equity in the new company, Publicis Omnicom Group, with Wren and Levy serving as co-CEOs for 30 months from the closing.

     

    According to an Ad Age report, the proposed Publicis-Omnicom merger would have created a company with a combined market cap of $37 billion and joint 2013 revenues of nearly $24 billion. Combined, the duo could have leapfrogged London-based WPP as the world’s largest advertising holding company.
     

    With the merger being called off, WPP Group CEO Martin Sorrell can have a good laugh. Sorrell while talking to CNBC from China said, “I think this deal was driven by ego issues and emotional issues, I think both CEOs wanted to try and dislodge WPP from its number one perch and so it was emotional and egotistical. It was also a case of eyes being bigger than your tummy.”
     

  • Tim Love announces retirement

    MUMBAI: Omnicom Group has announced that its Asia Pacific/India/Middle East/Africa (APIMA) vice chairman and CEO Tim Love resumed his duties at the company‘s corporate headquarters in New York effective 1 January.

    Omnicom also announced Love‘s intention to retire at the end of the first quarter.

    Omnicom president and CEO John Wren said, “Tim has been an important part of our executive team, leading the current phase of our Asia Pacific expansion efforts. While Tim may be retiring from Omnicom, he will undoubtedly bring his passion for making a difference in the world to the next chapter of his life. We wish him well.”

    “Tim leaves the region in excellent health. In the past decade, Omnicom has developed a truly world class management team across Asia Pacific resulting in solid growth, unparalleled creativity and effective marketing on behalf of our clients. This was recently reflected by over 30 Omnicom agencies winning a record number of awards, significantly outpacing the competition, at two of the most prestigious creative award shows in the region – Spikes Advertising Festival and Campaign Asia‘s Agency of the Year awards,” Wren added.

    During his 40-year career in advertising and brand building, Love has held senior client relationships in the US and abroad. Prior to becoming vice chairman of Omnicom in 2006 he was president of Global Clients at Omnicom network TBWA Worldwide.