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NEW YORK - Stagwell (NASDAQ: STGW), a marketing network with a market capitalization of $1.5 billion known for its creative performance, has acquired JetFuel, an agency specializing in experiential marketing, as announced today. JetFuel will operate as a subsidiary under Stagwell’s experiential agency TEAM. According to InvestingPro data, Stagwell trades at a notably high P/E ratio of 242x, reflecting market expectations for future growth.
Since its inception in 2016, JetFuel has established itself in New York City, gaining recognition for its live brand experiences and digital content creation. The agency boasts a client roster that includes Walmart, Unilever, and Feastables, among others. Stagwell’s revenue reached $2.8 billion in the last twelve months, with a healthy gross profit margin of 35%. InvestingPro analysis reveals 8 additional key insights about Stagwell’s financial health and growth prospects, available to subscribers.
Stagwell’s Chairman and CEO, Mark Penn, emphasized that JetFuel’s expertise in experiential marketing aligns with Stagwell’s goal to deliver exceptional experiences for clients. He sees the acquisition as a strategic move to maintain Stagwell’s position to produce impactful work for its clients.
JetFuel’s CEO, Abe Sorcher, expressed enthusiasm about joining Stagwell, highlighting the potential for reinventing live brand experiences and leveraging Stagwell’s resources for innovative client solutions.
Dan Gregory, CEO of TEAM, noted the increasing value clients find in authentic live engagements in today’s digital-first landscape. He anticipates that JetFuel’s addition will enhance Stagwell’s experiential marketing capabilities.
The acquisition is part of Stagwell’s broader strategy, following a series of acquisitions, including Gold Rabbit Sports and ADK GLOBAL, and a total of 11 acquisitions throughout 2024. Kidron Capital Securities served as JetFuel’s financial advisor for the transaction.
This move is based on a press release statement and reflects Stagwell’s ongoing efforts to expand its portfolio and enhance the services offered to its clients.
In other recent news, Stagwell Inc. reported its fourth-quarter earnings for 2024, meeting analysts’ expectations with an earnings per share (EPS) of $0.24 and revenue of $789 million, surpassing forecasts by approximately 5%. The company announced a significant financial development, securing an expanded credit facility that increases its revolving commitments by $110 million, totaling $750 million, with the maturity date extended to April 2030. During a virtual investor day, Stagwell set ambitious targets, aiming to reach $5 billion in annual revenue by 2029 and $1 billion in adjusted EBITDA within the next five years, without increasing debt ratios. Analysts from Benchmark maintained a Buy rating and a $10.00 price target for Stagwell’s shares, expressing confidence in the company’s strategic plans to drive growth in revenue and EBITDA. Stagwell also appointed John Kahan as its first Chief AI Officer, emphasizing its commitment to integrating AI technologies within its global operations. The company is focusing on substantial cost savings, estimating $80 to $100 million through AI-driven technologies over the next 18 to 24 months. Additionally, Stagwell is restructuring its business units to align with current client purchasing patterns and simplifying its capital structure by eliminating its two-class share structure. The company is enhancing its data capabilities through a partnership with Palantir, integrating advanced data analysis and AI tools.
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