Omnicom to buy Interpublic, creating ad agency giant with nearly $26 billion in annual revenue

Omnicom is buying Interpublic Group in a stock-for-stock deal that will create an advertising powerhouse with combined annual revenues of nearly $26 billion.

New York City agencies have had a hand in iconic marketing campaigns such as ‘Got Milk’ for the California Milk Processor Board, ‘Priceless’ for Mastercard, ‘Because I’m Worth It’ for L’Oréal and ‘Think Different’ for Apple .

The combined company will be worth more than $30 billion.

Shareholders of The Interpublic Group of Companies Inc. receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4% after the transaction is completed.

The company will retain the Omnicom name and trade under the ticker symbol “OMC” on the New York Stock Exchange.

The deal is expected to deliver annual cost savings of $750 million and is expected to close in the second half of next year. It still needs approval from Omnicom and Interpublic shareholders.

Shares of Interpublic rose more than 15% before the market opened Monday, while shares of Omnicom fell more than 2%.