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| Mark Penn |
Stagwell Group and MDC Partners have ironed out a definitive merger agreement to form what CEO Mark Penn calls a $2B “transformative” marketing services company with 8,600 employees in 23 countries.
The merger creates a roster of PR/PA firms that includes Finn Partners, KWT Global, Hunter, Allison + Partners, Sloane & Co and SKDKnickerbocker.
That group generates about 16 percent ($320M) in overall revenues.
Advertising (37 percent) is the largest component of the enlarged operation followed by digital services (32 percent), research (six percent), “other” (six percent) and media (four percent).
Penn, who currently helms both firms, is shooting for $3B annual revenues by 2025.
That goal is based on achieving $2.6B in revenues via five percent plus annual organic growth and a 10 to 15 percent boost in digital marketing business; $325M in revenues from M&A activities and the addition of $75M in “new digital revenues streams."
Stagwell and MDC, which announced a non-binding deal in October, expect the merger will be completed during the first half of 2021.
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
Public Policy Holding Company registered 24.1 percent growth to a record $135M during the past year, which included the results of the March 1 acquisition of Multistate Assocs.
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