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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.
Stagwell’s Q4 revenues grew two percent to $807M while adjusted EBITDA rose three percent to $129M.
WPP CEO Cindy Rose unveiled “Elevate 28,” a strategic plan to simplify the troubled company, which reported a 5.4 percent drop in 2025 revenues to $13.6B.
Omnicom CEO John Wren reported a Q4 $977.2M operating loss, largely due to the $1.1B in severance and repositioning expenses connected to the $13B Interpublic takeover that closed on Nov. 26.
Publicis Groupe reports an 8.8 percent rise in 2025 net revenues to $16.4B with
Public Policy Holding Company today priced its initial public offering at $12.25 per share. The sale of 4,150,000 shares raised $50.8M in gross proceeds.
