Stagwell has reached an agreement to sell healthcare marketing agency ConcentricLife to Accenture Song for $245 million cash. 

Stagwell said it is selling the unit as part of a streamlining effort to focus on “core digital services.” 

Stagwell CEO Mark Penn said, “We believe Accenture Song will be a good home for ConcentricLife, consistent with their focus on growing presence in the healthcare and life sciences industry. “  

Penn said the proceeds will be reinvested in digital capabilities across the company’s agencies, as well as in the firm’s AI-based product suite housed within the Stagwell Marketing Cloud. Proceeds could also be used for M&A.  

ConcentricLife was founded in 2002 by Ken Begasse Jr., who heads the agency as CEO. Clients include Pfizer, Novo Nordisk and Abbott. It is headquartered in New York with offices in London, Atlanta, Chicago, Ft. Lauderdale and San Diego.  

Stagwell gained control of ConcentricLife through its merger with MDC Partners in 2021 and then paid a little more than $8 million to acquire the 27% of the agency it didn’t already own.  

David Droga, CEO, Accenture Song stated: “We believe that together with ConcentricLife we will create a powerful capability to shape the future of health experiences and provide a truly compelling proposition for our clients.” 

Completion of the transaction is subject to regulatory clearance and other customary closing conditions.