Source: 12Investing Published /30/2024, 14:05
New York and Dubai – Stagwell (NASDAQ: STGW), a marketing network known for its creative, technological and profitable services over the past 12 months, has announced the acquisition of Create. Group, a prominent digital communications group in the Middle East. The deal is set to boost Stagwell’s digital transformation capabilities in the MENA region. According to InvestingPro data, the company’s management is actively repurchasing shares, demonstrating its confidence in its growth strategy.
Known for its digital strategy, products, content and innovation, Create. Group has 15 years of experience and has served prominent clients including the Department of Culture and Tourism – Abu Dhabi, the Department of Economy and Tourism in Dubai, and Sony Pictures. The group is headquartered in the United Arab Emirates with additional offices in Saudi Arabia and Egypt.
The move comes as part of Stagwell’s broader strategy to strengthen its presence in the MENA market, following the recent acquisitions of Consulum and LEADERS. Create. The group earned recognition for excellence with numerous awards.
including Campaign’s Digital Agency of the Year in the Middle East for three consecutive years and Adweek’s 100 Fastest Growing Agencies award. For a detailed analysis of Stagwell’s expansion strategy and valuation metrics, investors can access the comprehensive research report available on InvestingPro.
which covers over 1,400 US stocks with expert insights and actionable information.
Mark Penn, Chairman and CEO of Stagwell, said the addition of Create. The group aligns with their vision for global digital transformation for clients and emphasizes the quality and impact of work that they can now produce at scale. Dan Gardner, CEO of Stagwell’s Code and Theory network, highlighted Create. Group’s central role in an important emerging market and its proven track record of delivering large-scale projects.
Tom Otton, Founder and CEO of Create, will continue to lead the company. Group, in leadership of the company with its integration into Stagwell’s Code and Theory network. The network now has 2,000 team members worldwide and is led by Gardner and CEO Michael Treff.
The acquisition of Create. Group marks Stagwell’s 11th acquisition in 2024, demonstrating a clear commitment to expanding its global footprint and investing in its digital transformation and communications strategy. The company’s growth strategy includes a series of acquisitions across various markets.
including Germany, Canada, Brazil, the United Kingdom, and the United States. InvestingPro analysis shows that net income will grow this year, and analysts expect continued profitability. The platform provides more than 10 additional exclusive insights into Stagwell’s financial health and market position.
The integration of Create. The group’s integration into the Stagwell network is expected to enhance its capabilities and scale, benefiting both the brands it serves and the broader market. Information in this article is based on a press release.
In other recent news, Stagwell Inc. has made significant progress in its business operations. The company reported strong performance in Q3 2024 with a 15% increase in total revenue year-over-year to $711 million. Key revenue drivers include an 85% increase in advocacy revenue, a 25% increase in digital transformation.
and a 30% growth in Stagwell Marketing Cloud. Adjusted EBITDA for the quarter was $111 million, reflecting a 19.2% margin on net revenue.
Stagwell also completed the acquisition of a global media monitoring and analytics company, issuing 3,390,788 shares of its Class A common stock to the seller. The company acquired UNICEPTA, a global media monitoring and analytics platform.
which will enhance the AI-powered capabilities of Stagwell Marketing Cloud’s PRophet Comms Tech suite.
Rosenblatt Securities raised its price target on Stagwell to $9, while maintaining a Buy rating on the stock. This upgrade builds on Stagwell’s return to high organic growth. These latest developments demonstrate Stagwell’s commitment to strategic growth and financial performance. The company’s focus on AI solutions and global expansion, coupled with its strong financial performance, underscores its continued efforts to integrate technology into its clients’ marketing practices.
