The Stagwell Group has vital progress ambitions, as latest reviews of founder Mark Penn approaching a possible merger with S4 Capital present.
With a technological focus, it presently employs round 13,000 folks throughout greater than 34 international locations inside companies equivalent to Anomaly, 72&Sunny, Forsman & Bodenfors, Doner and Gale.
Talking to ADWEEK, Penn wouldn’t touch upon any progress of a possible $700m merger provide, repeating that it’s “pencils down.” However, M&A is on the playing cards, with a “regular stream of strategic acquisitions” deliberate, in addition to progress in Europe and, like many companies, determining AI.
Worldwide growth is a precedence, mentioned Penn, following end-of-year outcomes that noticed worldwide income develop by 13% final 12 months, largely pushed by EMEA, the place progress was 17% for the 12 months. General, he forecasts 5% to 7% natural income progress, anticipating shoppers to extend their spending after a difficult 12 months for advertising providers, the place tech corporations, particularly, have diminished spending.
“We’re diversifying our geographic footprint. [At the moment] we’re at about 20/80 U.S. to international however we wish to get that to about 60/40 … as quickly as attainable,” he mentioned.
That’s buoyed by latest M&A exercise like shopping for inventive company Movers+Shakers for a reported $50 million, in addition to culturalist company Workforce Epiphany, European-based specialist company group Sidekick and French digital company What Subsequent Companions.
In line with Inexperienced Sq. companion Barry Dudley, any transfer to merge with S4 Capital can be centered on rising scale and take the ensuing firm to round 22,000 folks, putting it on an identical dimension to that of Havas, one other rumored suitor for Martin Sorrel’s empire. Sorrell has dismissed the presents saying there had been “no credible takeover approaches”.
“The entire large teams could have been circling a technique or one other,” mentioned Dudley. “S4C would undoubtedly convey new capabilities and experience, however I don’t assume this is able to be the principle driver.”
A deal with European progress
In September, Stagwell introduced the promotion of its media company Meeting’s CEO James Townsend to CEO of EMEA. He can be primarily based out of the newly opened London hub, supporting the 20 companies working within the area.
“We anticipate our progress to come back from share beneficial properties inside Europe,” Penn mentioned. “Already we see the sorts of pitches and alternatives that we’re getting as soon as folks notice the diversified expertise we’ve got there.”
Presently, its roster of shoppers in Europe contains BMW, Unilever, Netflix, P&G, Lenovo, Diageo, Google, Estee Lauder and Volvo.
“There’s an enormous alternative and momentum constructing in our EMEA enterprise the place we intend to be an alternative choice to the established competitors,” Townsend claimed.
