Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 118

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 118
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 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. 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:

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Estimated Fair ValueEstimated Useful Life in Years(dollars in thousands)Customer relationships$3,767 3Trade names549 3Total acquired intangible assets$4,316 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 revenue and net income (loss) for the year ended December 31, 2024 would not be materially different from the actual revenue and net income (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.Year Ended December 31, 2023(dollars in thousands)Revenue$2,570,380 Net income$42,891 Revenue attributable to Epiphany, included within the Consolidated Statements of Operations for the year ended December 31, 2024, was $47.4 million. Net income attributable to Epiphany, included within the Consolidated Statements of Operations for the year ended December 31, 2024, was $2.0 million. Other 2024 AcquisitionsOn July