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Stagwell acquires Tel Aviv's LEADERS to boost AI marketing

EditorTanya Mishra
Published 07/24/2024, 08:14 AM
STGW
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NEW YORK - Stagwell (NASDAQ: STGW), a network designed to revolutionize marketing, has announced the acquisition of Tel Aviv-based digital agency LEADERS and its SaaS platform InfluencerMarketing.AI, enhancing its Stagwell Marketing Cloud (SMC) with advanced AI influencer marketing capabilities. The integration into SMC's PRophet Comms Tech Suite aims to provide modern PR and marketing professionals with powerful tools for strategy and campaign management.

LEADERS, founded in 2017 by Eran Nizri and Yehonatan Arami, has distinguished itself in the influencer marketing and social commerce sector. Its SaaS platform, InfluencerMarketing.AI, utilizes AI technology to connect brands with over 300 million content creators globally, simplifying campaign launches and providing detailed analytics and sales forecasting. Clients such as Nespresso, Samsung (KS:005930), and Colgate-Palmolive (NYSE:CL), along with SaaS clients like Coca-Cola (NYSE:KO) and Estée Lauder, have leveraged the platform's services.

Mark Penn, Chairman and CEO of Stagwell, expressed enthusiasm about the acquisition, highlighting it as a key step in Stagwell's global expansion and a move to reinforce their marketing cloud with leading AI solutions. Eran Nizri, Group CEO of LEADERS, will report to Aaron Kwittken, Founder and CEO of SMC's Comms Tech Suite, while Itamar Gonsherovitz and Yehonatan Arami will continue to lead digital agency operations and business development, respectively.

The acquisition is part of Stagwell's strategic move to broaden its global footprint and invest in AI-driven digital marketing solutions. LEADERS marks the seventh company to join Stagwell's portfolio in 2024, following acquisitions in the U.S., U.K., France, Brazil, and globally.

The Stagwell Marketing Cloud offers a suite of data-driven SaaS solutions, including market research, communications, and media tools, leveraging technologies such as AI, machine learning, and augmented reality. PRophet, a component of SMC, is an award-winning platform providing AI-powered tools for communicators to engage with journalists and influencers efficiently.

InvestingPro Insights

As Stagwell (NASDAQ: STGW) continues to enhance its Stagwell Marketing Cloud with the acquisition of LEADERS and its InfluencerMarketing.AI platform, investors are monitoring the company's financial health and market performance closely. Stagwell's aggressive share buyback program, as highlighted in one of the InvestingPro Tips, indicates management's confidence in the company's value, potentially signaling a positive outlook to shareholders.

Another key InvestingPro Tip to consider is Stagwell's trading position near its 52-week high, reflecting a strong market sentiment and a noteworthy return over the last three months of 17.93%. This performance is particularly relevant for investors considering the company's strategic moves and acquisitions.

From the real-time data provided by InvestingPro, Stagwell's market capitalization stands at $1.89 billion, with a notable Price / Book ratio of 5.61 as of Q1 2024. The company's revenue growth for Q1 2024 at 7.65% quarterly indicates a positive trajectory in sales, which may be further bolstered by its recent acquisition and expansion efforts. Additionally, the company's gross profit margin of 35.85% showcases its ability to maintain profitability in its operations.

For those interested in gaining deeper insights and additional InvestingPro Tips, consider visiting https://www.investing.com/pro/STGW. There are 11 additional tips available to help investors make more informed decisions. To enhance your investing experience, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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