In a move that underscores the growing importance of e-commerce for global advertising and media agency holding companies, New York-based Omnicom has announced its intention to acquire Flywheel Digital, the commerce arm of Ascential, which also counts the Cannes Lions Festival of Creativity and WARC in its portfolio.

The deal, which is set to cost Omnicom a net cash purchase price of approximately $835 million, is expected to close in the first quarter of 2024, subject to Ascential shareholder approval, regulatory approvals, and customary closing conditions.

Flywheel Digital's services, which enable brands to sell goods across digital marketplaces like Amazon, Walmart, and Alibaba, are utilised by over 4500 brands worldwide. With a workforce of over 2,000 professionals, Flywheel operates a leading cloud-based digital commerce platform across the world’s major digital marketplaces, offering solutions for more than 400 digital marketplaces.

John Wren, Chairman and CEO of Omnicom, highlighted the strategic importance of the acquisition, stating, 'E-commerce sales worldwide are set to increase by 50%, reaching about $7 trillion dollars by 2025. The acquisition of Flywheel significantly broadens our reach and influence in the rapidly expanding digital commerce and retail media sectors, two of the fastest-growing parts of the industry.'

Post-acquisition, Flywheel will operate as a Practice Area within Omnicom and will be led by Duncan Painter, the current CEO of Ascential.

Painter expressed confidence in the synergies between the two companies, stating, 'By connecting Flywheel Commerce Cloud’s product and transaction data with Omni’s audience and behavioural data, we are poised to offer an end-to-end set of services that outpaces the competition.'

This acquisition underscores Omnicom's strategic focus on bolstering its digital capabilities. As a leading global marketing and corporate communications company, Omnicom offers services to over 5,000 clients in more than 70 countries. The addition of Flywheel's digital commerce capabilities is expected to significantly enhance Omnicom's offering in the e-commerce space, a sector that is witnessing rapid growth and transformation.

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