NEW YORK and DUBAI - Stagwell (NASDAQ: STGW), a marketing network known for its creative and technological services and profitable over the last twelve months, has announced the acquisition of Create. Group, a prominent digital communications group in the Middle East. The transaction is set to enhance Stagwell’s digital transformation capabilities in the MENA region. According to InvestingPro data, the company’s management has been actively buying back shares, demonstrating confidence in their growth strategy.
Create. Group, distinguished for its digital strategy, products, content, and innovation, boasts 15 years of experience and has served notable clients including the Department of Culture & Tourism - Abu Dhabi, Dubai Department of Economy and Tourism, and Sony (NYSE:SONY) Pictures. The group is headquartered in the UAE and has additional offices in Saudi Arabia and Egypt.
This move is part of Stagwell’s broader strategy to strengthen its presence in the MENA market, following recent acquisitions of Consulum and LEADERS. Create. Group has been recognized for its excellence with multiple awards, including Campaign’s Middle East Digital Agency of the Year for three consecutive years and Adweek’s Top 100 Fastest Growing Agencies. For detailed analysis of Stagwell’s expansion strategy and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert insights and actionable intelligence.
Mark Penn, Chairman and CEO of Stagwell, expressed that the addition of Create. Group aligns with their vision of global digital transformation for clients, emphasizing the quality and impactful work that can now be produced at scale. Dan Gardner, Executive Chairman of Stagwell’s Code and Theory Network, highlighted Create. Group’s central role in a significant emerging market and its track record of delivering large-scale projects.
Tom Otton, Founder and CEO of Create. Group, will continue to lead the company as it integrates into Stagwell’s Code and Theory Network. The network now boasts 2,000 team members worldwide and is led by Gardner and CEO Michael Treff.
The acquisition of Create. Group marks Stagwell’s eleventh in 2024, demonstrating a clear commitment to expanding its global footprint and investing in digital transformation strategy and communications. The company’s growth strategy includes a series of acquisitions across various markets, including Germany, Canada, Brazil, the UK, and the US. InvestingPro analysis indicates net income is expected to grow this year, with analysts predicting continued profitability. The platform offers 10+ additional exclusive insights about Stagwell’s financial health and market position.
Create. Group’s integration into Stagwell’s network is anticipated to enhance its capabilities and reach, benefiting both the brands it serves and the broader market. The information in this article is based on a press release statement.
In other recent news, Stagwell Inc. has been making significant strides in its business operations. The company reported a robust Q3 2024 performance with a 15% year-over-year increase in total revenue, reaching $711 million. Key revenue drivers include an 85% increase in advocacy revenue, a 25% rise in digital transformation, and a 30% growth in the Stagwell Marketing Cloud. The adjusted EBITDA for the quarter was reported at $111 million, reflecting a 19.2% margin on net revenue.
Stagwell has also completed the acquisition of a global media monitoring and analytics firm, issuing 3,390,788 shares of its Class A common stock to the seller. The company also acquired UNICEPTA, a global media monitoring and analytics platform, which is expected to enhance the AI-driven capabilities of Stagwell Marketing Cloud’s PRophet Comms Tech Suite.
Rosenblatt Securities has upgraded Stagwell’s price target to $9, maintaining a Buy rating on the shares. This upgrade is based on Stagwell’s return to high organic growth. These recent developments indicate Stagwell’s commitment to strategic growth and financial performance. The company’s focus on AI solutions and global expansion, along with its solid financials, underscore its ongoing efforts to integrate technology into marketing practices for its clients.
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