MDC Partners said today that merger talks with Stagwell are progressing, adding that the two sides have reached an agreement in principle “on certain aspects of the potential transaction."
The firm, which counts Anomaly, 72andSunny, Crispin Porter Bogusky and Assembly among its agencies, said it “expects to proceed with confirmatory due diligence," final talks and a definitive merger agreement.
Stagwell proposed the merger back in June and MDC has been mulling the offer since then. Due diligence is being conducted by a special committee of the firm’s independent directors. Mark Penn runs both companies, having founded Stagwell back in 2015. Last year he invested $100 million in MDC and was named CEO.
“Our focus from the beginning of this process has been to represent the best interests of the Company and our shareholders,” said Irwin Simon, MDC’s lead independent director. “Our intent is to diligently proceed towards an outcome that will maximize value to our shareholders.”