Stagwell Marketing Group And MDC Partners (MDCA) Combine Following Successful Shareholder Vote, Forming Stagwell Inc.
Stagwell Inc. brings together the digital-first capabilities of Stagwell Marketing Group with the creative talent of MDC Partners, creating a top 10 global marketing services company
Combined Company will trade on the Nasdaq under the ticker STGW beginning on August 3
Stagwell Inc. announced today that Stagwell Marketing Group Holdings LLC and MDC Partners Inc. (“MDC”) have officially completed a business combination (the “Combination”) following a successful shareholder vote on July 26, 2021, creating a top 10 global marketing services company. The combined company is called Stagwell Inc. and will trade on the Nasdaq under the ticker symbol “STGW” beginning Tuesday, August 3, 2021. Under the continued leadership of CEO Mark Penn, Stagwell’s roster of world-class clients will benefit from award-winning creative talent and the latest connected technologies to drive the most effective marketing outcomes.
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“I am excited about the unique opportunity we have to build a new kind of holding company that can transform the industry and create enhanced opportunities for growth and value in the marketplace,” said Mark Penn, CEO, Stagwell. “Stagwell is born from the understanding that modern culture demands the highest levels of agility and creativity to drive unique, connected experiences. Given the depth of our combined talent, we are uniquely positioned to build new marketing solutions help our clients achieve their business results. Madison Avenue, get ready for Stagwell.”
Stagwell targets growth to $3 billion in revenue by 2025, including acquisitions, organic growth, and new products. Stagwell expects its next-level growth to be driven by four key drivers:
- Leading-edge digital transformation: Stagwell boasts a digital engine that understands the fastest growing segments of the marketing and advertising industry, such as e-commerce, platform building, online advocacy, influencer marketing, and global performance marketing.
- Scaled creative performance: The combined company will break down the artificial divide between brand marketing and performance media to help clients deliver effective advertising at scale, powered by higher levels of creativity.
- Innovative SaaS digital marketing products: Stagwell will continue its investment in building SaaS marketing products that solve for key gaps in the marketing ecosystem based on industry know-how and engineering heft.
- Integrated solutions at global scale: While the top four marketing holding companies have historically had a stranglehold on these opportunities, the combined company can easily create global teams with the potential to win contracts at the highest levels.
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These growth drivers will be supported by Stagwell’s culture of collaboration, which leverages the best in connected technology to bring together agencies across disciplines. The combined company’s nearly 10,000 employees and affiliates bring a wealth of experience across creativity, digital transformation, data analysis and audience targeting to help identify, design and execute the right solutions for modern marketers.
Stagwell now includes renowned brands including creative agencies such as 72andSunny, Anomaly, Doner and Forsman & Bodenfors, cutting edge digital transformation firms including Code and Theory, YML and Instrument, media powerhouses Assembly, ForwardPMX and GALE, public relations leaders Allison+Partners, SKDK and Hunter, and market research firms the Harris Poll and NRG. The combined company is expected to generate between $2.135 billion and $2.180 billion in total revenue and between $372 million and $387 million in Adjusted EBITDA in 2021 on a pro forma basis including $30 million of projected synergies. Stagwell’s clients include best-in-class marketers such as P&G, Nike, and Google.
“As we move forward as Stagwell, I could not be prouder of the incredible work our agencies have already achieved together on behalf of clients like Nike, Google and P&G,” said Penn. “As we enter this new phase of our partnership, I have no doubt we have the right talent, creativity and connected services to continue our combined legacy of industry-leading client work and truly transform the future of marketing.”
Designed and created by Doner, Stagwell’s new visual identity colorfully symbolizes the combination of MDC and the Stagwell Marketing Group, and the combination of creativity and connected experiences.
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