Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 6

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 6
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million in 797,916 shares of Class A Common Stock, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of $17.0 million, subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion. The goodwill is deductible for income tax purposes. The consideration has been allocated to the assets acquired and assumed liabilities of Epiphany based upon fair values. The purchase price allocation is as follows:Amount(dollars in thousands)Cash and cash equivalents$1,095 Accounts receivable, net8,283 Expenditures billable to clients4,823 Other current assets402 Right-of-use lease assets2,788 Fixed assets184 Identifiable intangible assets4,316 Accounts payable(1,086)Accruals and other liabilities(664)Advance billings(8,808)Current portion of lease liabilities - operating leases(516)Long-term lease liabilities - operating leases(2,600)Net assets assumed8,217 Goodwill8,452 Purchase price consideration$16,669 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 Epiphany. Goodwill of $8.5 million was assigned to the Integrated Agencies Network reportable segment. 

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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 three years. The following table presents the details of identifiable intangible assets acquired:Estimated Fair ValueEstimated Useful Life in Years(dollars in thousands)Customer relationships$3,767 3Trade names549 3Total acquired intangible assets$4,316 Revenue attributable to Epiphany, included within the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 was $10.9 million and $13.4 million, respectively. Net income attributable to Epiphany, included within the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 was $1.3 million and $0.1 million, respectively. Other 2024 AcquisitionsOn July 19, 2024, the