The move will see the advertising and direct marketing agencies share back-office operations in some of the markets in which they operate, but they will not merge.
The alliance, however, is likely to result in costs being cut as savings are made from sharing backend services.
In January, then-CEO John Dooner had said that Lowe was to work in "close alignment" with other agencies in Interpublic's The Partnership division, leading to speculation at the time that there could be a merger.
Howard Draft will add the role of chairman of Lowe & Draft to his current job of chairman and chief executive of Draft in Chicago; and Jerry Judge, chief executive of Lowe in New York, adds the title of president and chief executive of Lowe & Draft.
Since Dooner made the announcement, he was forced to step down from the role of CEO at troubled Interpublic Group of Companies, to return to his old job heading McCann-Erickson Worldwide. He was replaced by David Bell, former chairman of True North before it was acquired by Interpublic. Bell is seen as a pair of safe hands, as Interpublic tries to restore its ailing share price and its reputation on Wall Street amid accounting scandals.
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