Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 64

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 64
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. The preliminary purchase price allocation is as follows:Amount(dollars in thousands)Cash and cash equivalents$2,151 Accounts receivable, net26,845 Other current assets3,094 Right-of-use lease assets2,173 Fixed assets2,032 Identifiable intangible assets57,200 Accounts payable(2,078)Accruals and other liabilities(9,167)Advance billings(5,425)Current portion of lease liabilities - operating leases(983)Long-term lease liabilities - operating leases(1,065)Deferred tax liabilities, net(8,618)Net assets assumed66,159 Goodwill16,687 Purchase price consideration$82,846 The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Consulum. Goodwill of $16.7 million was assigned to the Communications Network reportable segment. The goodwill is not deductible for income tax purposes. Intangible assets consist of trade names and customer relationships. We amortize purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is nine years. The following table presents the details of identifiable intangible assets acquired:

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Estimated Fair ValueEstimated Useful Life in Years(dollars in thousands)Customer relationships$43,800 7Trade names13,400 10Total acquired intangible assets$57,200 The unaudited pro forma information presents the combined results of operations of the Company and Consulum for the periods set forth below giving effect to the acquisition as if it occurred as of January 1, 2024. The pro forma revenue and net loss for the three and six months ended June 30, 2024 would not have been materially different from the actual revenue and net loss reported. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time.Three Months Ended June 30, 2024Six Months Ended June 30, 2024(dollars in thousands)Revenue$684,832 $1,369,810 Net loss$(2,708)$(95)Revenue attributable to Consulum, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $16.0 million and