NEW YORK - Stagwell (NASDAQ: STGW), a $1.9 billion market cap marketing network focused on transformative strategies and showing an impressive 18.4% return over the past year, has announced its acquisition of UNICEPTA, a global media monitoring and analytics platform. According to InvestingPro data, the company has demonstrated strong shareholder focus, with management actively buying back shares. The agreement will integrate UNICEPTA into Stagwell Marketing Cloud's PRophet Comms Tech Suite, enhancing the suite's AI-driven capabilities for PR and marketing professionals.
UNICEPTA, with three decades of experience in data-driven insights, offers extensive monitoring and analytics services that support Fortune Global 500 companies in navigating media. The company operates across eight countries and four continents, with its headquarters in Cologne, Germany.
The acquisition follows the addition of LEADERS and InfluencerMarketing.AI to PRophet earlier this year and comes after UNICEPTA's UK and German teams secured multiple awards at the AMEC Communication Effectiveness Awards in London on November 7. The company's expansion strategy is supported by solid financials, with $270.9 million in EBITDA and 4.9% revenue growth in the last twelve months.
Mark Penn, Chairman and CEO of Stagwell, emphasized the complementary nature of UNICEPTA's tools with Stagwell's existing offerings, aiming to cut through media complexity and misinformation. Aaron Kwittken, Founder and CEO of PRophet, described the acquisition as a pivotal moment for the comms tech industry, positioning PRophet to compete more effectively.
Sebastian Rohwer and Alexander Peinemann, Co-CEOs of UNICEPTA, will continue to lead the company and join the leadership of Stagwell's PRophet Comms Tech unit, which now boasts over 500 team members globally.
Stagwell's expansion strategy has led to ten acquisitions in 2024, with UNICEPTA being the latest. The company has been investing in AI solutions and increasing its global presence.
This acquisition is part of Stagwell's ongoing efforts to offer creative performance and integrate technology into marketing practices for its clients. InvestingPro analysis suggests the company is currently undervalued, with analysts forecasting continued profit growth this year. For detailed insights and access to the comprehensive Pro Research Report covering Stagwell and 1,400+ other stocks, consider subscribing to InvestingPro. The information provided is based on a press release statement and InvestingPro data.
In other recent news, Stagwell Inc. reported a robust performance in the third quarter of 2024. The company's total revenue rose by 15% year-over-year, reaching $711 million. This growth was driven by an 85% increase in advocacy revenue, a 25% rise in digital transformation, and a 30% growth in the Stagwell Marketing Cloud. Adjusted EBITDA for the quarter was reported at $111 million, reflecting a 19.2% margin on net revenue.
Rosenblatt Securities also recently upgraded Stagwell's price target to $9, maintaining a Buy rating on the shares. This upgrade followed Stagwell's return to high organic growth, bolstering confidence in the company's performance. The firm's positive outlook is based on the assumption that Stagwell will sustain a peer-average 8.5x EV/EBITDA multiple for the year 2025.
Alongside these financial results, Stagwell has been actively pursuing strategic initiatives. These include the launch of Stagwell ID Graph, the development of the Machine AI content platform, and the acquisitions of Consulum and LEADERS. Despite investing $18 million in cloud and AI, the company expanded its stock buyback program by $125 million and completed seven acquisitions in 2024. These recent developments underscore Stagwell Inc.'s strong financial performance and strategic growth trajectory.
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