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

New York City agencies have participated in iconic marketing campaigns like “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. will receive 0.344 shares of Omnicom 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% once the transaction is finalized.

“Our two companies have very complementary offerings, geographic presence and cultures,” said Philippe Krakowsky, CEO of Interpublic, in a statement. “We also share a fundamental belief in the power of ideas, enabled by technology and data.”

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

John Wren will remain president and CEO of Omnicom, while Phil Angelastro will remain executive vice president and CFO of Omnicom. Krakowsky and Daryl Simm will serve as co-presidents and chief operating officers of Omnicom.

Three current Interpublic board members, including Krakowsky, will join the Omnicom board.

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

Interpublic shares jumped more than 13% before the market opened Monday, while Omnicom shares fell more than 3%.