MDC Partners Inc. (NASDAQ: MDCA) shares spiked 31.29% t0 $2.39 in the late-hours after the announcement by the company that MDCA and Stagwell Media LP have entered into a definitive merger arrangement to incorporate their respective businesses, merging MDC’s award-winning expertise with Stagwell’s innovative technological infrastructure to build the business demands of today’s disruptive marketing organization. Together, the companies will substantially broaden their portfolio of best-in-class capabilities. The wealth of knowledge and geographical reach provide the consumers with improved value and significantly stimulate the merged business’s growth.
“This is a new day for MDC and Stagwell,” said Mark Penn, MDC Partners’ Chairman and CEO, and Stagwell Group’s Managing Director. Together, to build a disruptive marketing services organization delivering scaled Creative Output, they unleash precisely the right expertise and technologies. MDC is celebrated by offering award-winning innovative firepower to the world’s leading and most visionary businesses, and Stagwell has been developed at its heart of deep and advanced technology. Unencumbered by legacy frameworks or properties
The merged organization would balance comprehensive technologies, including second-to-none ingenuity and communications, scaled advertising, and data capabilities, better client analytics, technological growth, and advancement, and digitalization, that modern marketers need to thrive. The pre-transaction holders of MDC Class A and Class B stock would receive 26% of the combined company’s common equity without giving effect to any exchange of outstanding preferred shares. Stagwell would receive equity compensation equal to 74% of the combined company’s common equity, and It is estimated that Stagwell and its affiliates will own nearly 79% of the merged company’s common equity shortly after the deal closes.
In our investor presentation at www.mdc-partners.com/investors and the related video at www.mdc-partners.com, you can find more information on MDC’s combination and market offers and Stagwell.