Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 67

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 67
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 shares of the Company’s Class A Common Stock , €0.7 million in a deferred cash payment (approximately $1 million), which was paid in January 2025, and €10.6 million (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.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$2,723 Accounts receivable, net9,354 Other current assets575 Right-of-use lease assets5,911 Fixed assets429 Identifiable intangible assets36,833 Other assets140 Accounts payable(2,808)Accruals and other liabilities(6,998)Advance billings(951)Current portion of lease liabilities - operating leases(1,071)Long-term lease liabilities - operating leases(5,400)Deferred tax liabilities, net(10,500)Other liabilities(406)Net assets assumed27,831 Goodwill34,583 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 $34.6 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 Technology9,333 5Total acquired intangible assets$36,833 

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The pro forma revenue and net loss of the Company for the three months ended March 31, 2024, was $683.2 million and $3.6 million, respectively.