Merger of Stagwell and MDC Approved

Shareholders in marcoms conglomerate MDC Partners Inc. have voted more than three to one in favour of its merger with Mark Penn's Stagwell Group, owner of the Harris and Harris Poll brands.

The vote seems to have been comfortable enough despite the loud and public objections of Indaba Capital Management, MDC's largest independent shareholder: other leading shareholders including Madison Avenue Partners lined up with Penn, who is Chairman and CEO of MDC Partners and Managing Partner of the Stagwell Group.

The transaction - first proposed a year ago and formalised by December, is expected to complete next week, and the combined company will be renamed Stagwell Inc. and traded on the NASDAQ Stock Exchange. The new entity, 31% owned by MDC shareholders, will have around 10,000 employees and is expected to reach around $2bn in revenue this calendar year, although its owners have set an ambitious target of more than $3bn in revenue by 2025.

Penn (pictured) says of the vote: 'On behalf of our Board and management team, I would like to thank our shareholders for their approval of the combination with Stagwell and for recognizing this was a unique opportunity to create a new marketing machine that can transform the industry and create enhanced opportunities for growth and value in the marketplace. The combined company's nearly 10,000 employees will bring together the best in creativity globally with new, connected experiences to serve our clients effectively. The long wait is over, and we are ready to move forward together'.

Irwin D. Simon, Lead Independent Director & Chair of the MDC Partners Special Committee adds: 'The recent constructive dialogue amongst all parties helped us reach a deal that is in the best interests of MDC shareholders and leaves the combined company well positioned to create growth and cash flow, while generating value for all MDC shareholders'.

Web sites: www.mdc-partners.com and www.stagwellgroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.