Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 122

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 122
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 is fully deductible for income tax purposes.On April 25, 2023, the Company acquired Huskies, Ltd. (“Huskies”), for €5.2 million ($5.6 million) of cash consideration, of which €0.9 million ($1.0 million) is deferred, subject to post-closing adjustments. 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 Huskies and expected growth related to new customer relationships and geographic expansion. Goodwill of $2.6 million was assigned to the Brand Performance Network reportable segment. The goodwill is non-deductible for income tax purposes. 2023 DispositionsOn October 31, 2023, the Company sold ConcentricLife (“Concentric”), which was included in Integrated Agencies Network, to a strategic buyer for $245.0 million in cash resulting in a pre-tax gain of $94.5 million. The gain was recognized within Gain on sale of business within the Consolidated Statements of Operations. The divestiture did not represent a strategic shift that would have a major effect on the Company’s consolidated results of operations, and therefore its results of operations were not reported as discontinued operations.

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2022 AcquisitionsThe Company acquired the entities below in the year ended December 31, 2022. Pro forma revenue and net income related to these acquisitions are as follows: Brand New Galaxy The pro forma revenue and net income for the year ended December 31, 2022, was $2,698.0 million and $49.3 million, respectively.TMA Direct, Inc. The pro forma revenue and net income for the year ended December 31, 2022, was $2,691.6 million and $51.4 million, respectively.Maru Group LimitedThe pro forma revenue and net income for the year ended December 31, 2022, was $2,717.7 million and $36.0 million, respectively.Wolfgang, LLC.The pro forma revenue and net income for the year ended December 31, 2022, was $2,696.7 million and $51.4 million, respectively.Epicenter Experience LLC.The pro forma revenue and net income for the year ended December 31, 2022, was $2,691.0 million and $49.7 million, respectively.

5. Revenue The Company’s revenue recognition policies are established