Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 135

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 135
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 statement expense line items. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of these new requirements on its income statement presentation and disclosures.In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information about an entity’s effective tax rate reconciliation, as well as information on taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Interim disclosures are not impacted by this update. The Company is evaluating the impact of these amendments on its annual disclosures.

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 Table of Contents

3. Acquisitions

2025 AcquisitionsAcquisition of ADKOn June 2, 2025, the Company acquired ADK Global (“ADK”), a network of marketing solutions companies operating in APAC region, for an estimated purchase price of $25.7 million, subject to post-closing adjustments. In accordance with the agreement, the Company and the sellers are expected to finalize the purchase price within 90 days from the acquisition date. Accordingly, substantially all of the payment for this acquisition is expected to be made in the fiscal quarter ending September 30, 2025.  The consideration has been allocated to the assets acquired and assumed liabilities of ADK based upon fair values. The purchase price accounting is not yet final and the preliminary purchase price allocation is as follows:Amount(dollars in thousands)Cash and cash equivalents$34,200 Accounts receivable, net15,307 Other current assets7,529 Right-of-use lease assets2,100 Fixed assets924 Identifiable intangible assets103 Other assets628 Accounts payable(5,188)Accruals and other liabilities(23,524)Advance billings(3,292)Current portion of lease liabilities - operating leases(1,500)Long-term lease liabilities - operating leases(600)Other liabilities(979)Purchase price consideration$25,708 

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The unaudited pro forma information presents the combined results of operations of the Company and ADK for the periods set forth below giving effect to the acquisition as if it occurred as of January 1, 2024. The pro