Omnicom Spins Off Jack Morton Two Months After IPG Acquisition
Jack Morton exits Omnicom two months post-IPG acquisition, merging with Impact XM in PE-backed deal. The experiential agency consolidation signals holding company portfolio restructuring.
Jack Morton is breaking away from Omnicom and going private less than two months after the holding company finalized its acquisition of rival IPG, which included the experiential agency as part of the multibillion-dollar takeover.
The agency is merging with Impact XM to form a combined company retaining the Jack Morton name, backed by private equity funding from New York-based investment firm The Riverside Company. The deal, expected to close in Q1 2026, will create a company with over 1,000 employees across 20 offices.
Leadership and Deal Timeline
Impact XM CEO Jared Pollacco will lead the unified agency as CEO, while Jack Morton CEO Craig Millon becomes global president. Josh McCall, who served as Jack Morton CEO from 2003 until retiring in 2022, will be executive chairman of the board of directors.
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According to Pollacco, merger discussions began in late 2024 before Omnicom's December takeover bid for IPG was announced. After pausing for due diligence, negotiations accelerated throughout mid-2025 before reaching agreement. Financial details were not disclosed, though Grant Gregory of Gregory & Hoenemeyer served as financial adviser.
Healthcare Focus Drives Merger Strategy
The merger includes Jack Health, Jack Morton's healthcare subsidiary with 35 employees. Despite revenue declining from $18 to 20 million in 2023 to $16 to 18 million in 2024, Jack Health added nine brands including CVS, Medtronic, and Regeneron.
Pollacco emphasized the merger combines Impact XM's healthcare expertise with Jack Health's market presence, delivering enhanced experiential capabilities. Millon noted the partnership strengthens content strategy, healthcare provider engagement, and measurable outcomes at medical conferences.
"We've always believed that healthcare marketing can be more human," Millon said, explaining the merger brings "world class marketing into the healthcare sphere."
Broader Industry Consolidation Context
The spinoff comes as Omnicom completed its acquisition of IPG for a final purchase price of approximately $9 billion. The merger created the world's largest advertising and marketing services company, prompting significant portfolio restructuring.
The Jack Morton deal signals how holding companies are increasingly willing to divest recently acquired assets when strategic fit or operational priorities shift. For experiential marketing agencies operating across Asian markets, this creates uncertainty around parent company stability and long-term investment commitments.
The transaction is expected to close in the first quarter of 2026, subject to standard regulatory approvals and closing conditions.
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