Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 5

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 5
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26,845 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 pro forma revenue and net income of the Company for the three months ended March 31, 2024, was $685.0 million and $2.6 million, respectively. The unaudited pro forma financial information is 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.Revenue attributable to Consulum, included within the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2025, was $12.8 million. Net income attributable to Consulum included within the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2025, was $0.2 million. The purchase price accounting is not yet final as the Company has not yet finalized its valuation processes and therefore may still make adjustments.Acquisition of Team EpiphanyOn January 2, 2024, the Company acquired Team Epiphany, LLC (“Epiphany”), a consumer marketing company, for $16.7 million, of which $11.7 million was paid in cash and $5.0