NEW YORK - Stagwell (NASDAQ: STGW), a marketing network, has announced the acquisition of Sidekick, a collective of agencies renowned for their work in experiential, digital storytelling, and branded content. Sidekick will become part of Allison, a global marketing and communications consultancy within the Stagwell network.
The acquisition is aimed at enhancing Allison's capabilities in Europe, adding to its strategic communications, influencer marketing, digital, performance marketing, and data analytics services. Sidekick's expertise in 'real-world' activations, video production, and digital storytelling, including social media, gamification, and AR/VR content, is expected to create synergies with Allison's existing competencies.
Mark Penn, Chairman and CEO of Stagwell, expressed enthusiasm for the acquisition, noting Sidekick's leading position in storytelling and its anticipated contribution to Stagwell's growth in Europe. Scott Allison, Global Chairman of Allison, echoed these sentiments, highlighting the cultural and service alignment between the two organizations.
Sidekick was formed in 2021 through the merger of experiential agency Kreate and content agency Many Makers. Duncan McCaslin and Ollie Burgoyne, co-founders of Sidekick, will join Allison's European management team, continuing as Managing Directors. Directors William Howe and Stephen Bradley will also transition to Allison in their current roles, with no other staffing changes planned.
The acquisition follows Stagwell's recent European expansion, including the appointment of James Townsend as CEO, EMEA, and the establishment of a regional hub in London. This move represents Stagwell's second acquisition of the year, after purchasing Team Epiphany in January 2024.
Stagwell is recognized for delivering creative performance for global brands, combining creativity with technology.
This acquisition is based on a press release statement.
InvestingPro Insights
As Stagwell (NASDAQ: STGW) embraces its latest strategic acquisition, investors and market observers are closely monitoring the company's financial health and stock performance. With the integration of Sidekick into Allison, Stagwell aims to bolster its European market presence and enhance its service offerings. Here are some key insights from InvestingPro that shed light on Stagwell's current market position and future outlook:
Stagwell's management has demonstrated confidence in the company's trajectory through aggressive share buybacks, a move that often signals a belief in undervalued stock or a strong future. Additionally, analysts are optimistic about the company's profitability, forecasting net income growth this year. This could be a positive indicator for investors who are looking for growth in the wake of the Sidekick acquisition.
From a financial standpoint, Stagwell's market capitalization stands at $1.9 billion USD, reflecting its size and influence in the sector. Despite a challenging market, the company has seen a substantial price uptick over the last six months with a 39.84% total return, highlighting the market's positive reception to its strategic moves and potential for growth. This is complemented by a strong return of 32.75% over the last three months, suggesting a robust short-term performance.
However, investors should be aware of the company's financial metrics that may warrant attention. Stagwell's Price to Book ratio of 5.73 indicates that the stock is trading at a premium relative to the company's book value. Additionally, the P/E ratio stands at -82.50, suggesting that the market has priced in future earnings growth despite the company not being profitable over the last twelve months.
For those interested in a deeper dive into Stagwell's financials and stock performance, InvestingPro offers a wealth of additional insights. Subscribers can access more detailed analyses, including the company's revenue and profit margins, as well as expert analyst opinions. To help investors make more informed decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 additional InvestingPro Tips available, providing a comprehensive understanding of Stagwell's market position and potential.
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