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Tag: Philippe Krakowsky

  • 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.

  • IPG names Philippe Krakowsky as new CEO

    IPG names Philippe Krakowsky as new CEO

    KOLKATA: IPG has named Philippe Krakowsky as chief executive officer effective 1 January 2021. Michael I. Roth, the current chairman and chief executive officer will remain in his current role until then and when he will become executive chairman of the Board.

    Krakowsky is currently the executive vice president and chief operating officer of IPG and the chairman of IPG Mediabrands, with direct oversight of several IPG companies.

    "Philippe is the right CEO for the next era at IPG," said Roth. "He is a brilliant strategist and effective leader who has played a key role in developing our open architecture client service model, as well as modernizing our data, marketing services and media solutions. Our partnership over the years has been a key factor in our long-term success with both clients and our people.”

    “Through his multiple experiences running businesses and corporate functions at IPG, Philippe has built an outstanding track record of delivering growth for clients and IPG. In working with him for these past 18 years, I’ve seen first hand that Philippe is a values-driven leader who is well-positioned to lead IPG and our clients into a new era of marketing. He cares about people and leads with his head and his heart,” Roth added.

    Read more news on IPG

    Roth joined the IPG board in 2002 and chaired its Audit Committee until his appointment as Executive Chairman and co-CEO in 2004, and CEO in 2005. During his tenure as CEO, Roth righted the company’s financial course and made IPG an industry leader through organizational and financial restructuring, building a culture of collaboration, and ensuring IPG remained ahead of its peers through the early adoption of data-centric and digital-first tools across the entire organization.

    As a result, in each of the past five years, IPG’s growth rate has outperformed the industry average, and total shareholder return has topped IPG’s peer group over trailing one-, three-, five-, and 10-year periods, marking a reliable level of achievement and progress during a time that saw significant change in the industry with constantly evolving market dynamics.

    Roth’s tenure is also highlighted by his commitment and investment towards diversity and inclusion as a cornerstone of the organization. Under Roth’s leadership, IPG made diversity and inclusion a key aspect of how IPG’s leadership team and individual businesses are graded and introduced ambitious goals to create long-term culture change. Since Roth began implementing IPG’s formal diversity and inclusion programs, the company has seen important shifts in its workforce for people of color and women; however, as Roth has consistently said, “There is still much work to be done on this front.”

    “Michael’s leadership of IPG has been and continues to be outstanding. He has substantially transformed the company and ushered in a new era of modern marketing solutions," said David Thomas, presiding director of the IPG Board of Directors.  "He has taken bold strategic actions to reposition IPG for the future, focusing the company on the right business lines, growing digital and data capabilities organically and through acquisition, all while advancing diversity and employee engagement and setting the industry standard for growth and margin expansion. As Executive Chairman of IPG, Michael will work closely with the Board and with Philippe in his new role and with senior company executives on continuing to manage through changes related to COVID-19 and help shape the future of IPG.”

    "Having led one of the great turnarounds in American business, and establishing a strong foundation for its future, Michael has transformed IPG into an industry leader, and the Board is confident that Philippe is the right CEO for IPG’s next phase of continued value creation for all of our stakeholders," Thomas continued.  "Working with Michael, our multi-year succession process found in Philippe a leader with empathy, operational and management skills, a respect for talent and a vision for a digital-and-data-first marketing company – all of which will guide IPG at this fast-moving time.”

    “Philippe operates at that rare intersection of courage, drive and emotional intelligence. He looks to the future and sets ambitious goals for the company and its leaders – and he succeeds because he is a true collaborator who shares success with the team and uplifts them during the hard days. He’s been a strategic partner to me over the past 18 years, helping make IPG the company it is today,” added Roth.

    “It’s an honor to be elected as the next Chief Executive Officer of IPG, and I appreciate the confidence that Michael and the Board have placed in me,” said Krakowsky.  “With our people, agency brands, technology companies, and culture, we are uniquely positioned to help our clients solve their toughest business challenges. I am looking forward to working with our fifty-thousand people and all our clients around the world at this unique time, where we are seeing changes in media and consumer behavior accelerate at incredible speed. We have great opportunities ahead to help clients deepen their relationships with their customers, doing so efficiently, creatively and at-scale.”

    Krakowsky, 58, is Executive Vice President and Chief Operating Officer for IPG, where he works with the CEO to manage business operations across Interpublic. Philippe is also the Chairman of Mediabrands and oversees IPG’s independent companies Acxiom, Carmichael Lynch, Deutsch, Hill Holliday, Huge, Kinesso, Matterkind and R/GA. During his 18 years at IPG, Philippe has also overseen communications, business development, strategy and talent functions, and he remains the Chief Strategy Officer for IPG. Prior to being named COO at IPG, Philippe also held the role of CEO of Mediabrands, leading the 10,500-person unit that oversees marketing investment for many of the world’s most iconic brands. He has served on the boards of several IPG companies, including Huge and the IPG-backed O’Keefe Reinhard & Paul; he mentors start-ups as part of R/GA’s Accelerator; and he served as interim CEO of FCB for much of 2013, during the agency’s leadership transition. Originally from Mexico, Philippe holds an A.B. from Harvard University. He started his career as part of a team that built and ultimately sold an artificial intelligence software company to Apple Computer.