Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 115

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 115
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approximately $11 million) attributable to contingent consideration which is considered part of the purchase price, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of €40.0 million (approximately $42 million) subject to meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion.

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The consideration has been allocated to the assets acquired and assumed liabilities of Unicepta based upon fair values. The preliminary purchase price allocation is as follows:Amount(dollars in thousands)Cash and cash equivalents$2,215 Accounts receivable, net8,472 Other current assets3,913 Right-of-use lease assets5,914 Fixed assets445 Identifiable intangible assets35,312 Accounts payable(1,276)Accruals and other liabilities(2,967)Advance billings(1,527)Current portion of lease liabilities - operating leases(1,067)Long-term lease liabilities - operating leases(5,406)Deferred tax liabilities, net(11,445)Other liabilities(3,460)Net assets assumed29,123 Goodwill33,291 Purchase price consideration$62,414 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 Unicepta. Goodwill of $33.3 million was assigned to the Stagwell Marketing Cloud Group reported within All Other. The goodwill is not deductible for income tax purposes. Intangible assets consist of trade names, customer relationships, and developed technology. 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 10 years. The following table presents the details of identifiable intangible assets acquired:Estimated Fair ValueEstimated Useful Life in Years(dollars in thousands)Customer relationships$22,083 12Trade names5,417 10Developed Technology7,812 5Total acquired intangible assets$35,312 Pro Forma Financial InformationThe unaudited pro forma information for the periods set forth below gives effect to the acquisition as if it occurred as of January 1, 2023. 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.Year Ended December