MDC Partners Inc. - Ordinary Shares - Class A

NASDAQ:MDCA   3:59:54 PM EDT
4.91
+0.39 (+8.63%)
Debt Financing / Related, Officer Changes, Other Pre-Announcement

MDC Partners And Stagwell To Combine

Published: 12/22/2020 00:39 GMT
MDC Partners Inc. - Ordinary Shares - Class A (MDCA) - Mdc Partners and Stagwell to Combine.
Mdc Board of Directors Has Approved Transaction.
Mdc Partners - Run-rate Cost Savings of About $30 Million From Operational Efficiencies.
Over $200 Million of Pro Forma Cash Generation in 2021.
Mdc Partners-existing Mdc Common Shareholders Will Receive 26% of Common Equity of Combined Co & Stagwell Will Receive Earnings per Share Consideration Equal to 74%.
Mdc Partners -transaction Will Be Effected Using an "up-c" Partnership Structure, to Permit Additional Basis Step-up and Depreciation for Combined Co.
Target to Grow to $3 Billion+ in Revenue in 2025, Including Acquisitions, Organic Growth and New Products.
Mdc Partners- Mark Penn, Current CEO and Chairman of Mdc and Managing Partner of Stagwell, Will Continue As CEO and Chairman of Combined Company.
Management Team for Combined Company Will Consist of Existing Executives From Both Mdc and Stagwell.combined Company Will Remain Headquartered in New York, Ny and Will Maintain a Significant Presence in Washington Dcmdc Partners-pursuant to Transaction, Mdc to Be Converted Into a Limited Liability Co That Holds Both Stagwell's Subsidiaries, Mdc's Operating Assets.
Three Independent Directors on Board Will Continue As Directors in Combined Company.
Mdc Partners- Stagwell Will Contribute Its Operating Businesses to Mdc As So Converted.
Mdc and Stagwell Will Enter Into a Tax Receivable Agreement.