Credit: Joseph Barrientos via Unsplash
Omnicom, posting September quarter organic growth of 2.6%, expects its takeover of competitor IPG to be final next month.
Revenue in the third quarter increased 4% to $US4.03 billion
"We expect to close the Interpublic acquisition next month, creating the world's leading marketing and sales company,” said CEO John Wren.
“Together, we will emerge with the industry's most talented team and a powerful platform designed to accelerate growth through strategic advantages in data, media, creativity, production, and technology.
“We're already seeing strong momentum with significant new business wins across both companies, underscoring the compelling opportunities this acquisition creates.
“Our enhanced ability to deliver revenue growth, operate with greater efficiency, and generate healthy free cash flow only strengthens our confidence in the future - for our clients, our people and for long-term shareholder value."
The marriage of rivals brings together the third biggest advertising group, Omnicom, with the fourth, IPG, to form a company with 100,000 people and revenue of $25.6 billion (net revenue of $20 billion), with 57% of that in the US.
Omnicom recorded organic growth for the September quarter for Media & Advertising (9.1%), Execution & Support (2.%) and Precision Marketing (0.8%).
However, Healthcare fell 1.9%, Public Relations 7.5%, Experiential 17.7% and Branding & Retail Commerce 16.9%.
Organic growth by region included 4.6% for the US, 27.3% for Latin America, 3.7% for the UK and 5.9% for the Middle East & Africa.
Other North America fell 0.2%, Asia Pacific was down 3.7% and Euro Markets & Other Europe 3.1%.
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