Stagwell (STGW) Expands Digital Communications Capabilities in MENA by Agreeing to Acquire Create. Group, the Middle East's Leading Independent Strategic Digital Communications Group

Rhea-AI Summary

Stagwell (NASDAQ: STGW) has entered into an agreement to acquire Create. Group, the Middle East's leading strategic digital communications group. The acquisition will integrate Create. Group into Stagwell's Code and Theory Network, enhancing their digital transformation capabilities in the MENA region.

Create. Group, with 15 years of expertise in digital strategy and a prestigious client portfolio including DCT Abu Dhabi, Dubai DET, and Saudi Arabia's PIF, has won multiple awards including Campaign's Middle East Digital Agency of the Year in 2022-2024. The company operates from UAE headquarters with offices in Saudi Arabia and Egypt.

This marks Stagwell's eleventh acquisition of 2024, following recent MENA expansions with Consulum and LEADERS. Create. Group's founder Tom Otton will continue leading the company under Code and Theory Network's leadership, which now comprises 2,000 team members globally.

Positive

• Strategic expansion into MENA's digital communications market
• Acquisition of award-winning agency (3-time Digital Agency of the Year)
• Access to high-profile regional clients including government entities
• Geographic expansion with presence in UAE, Saudi Arabia, and Egypt
• Integration into Code and Theory Network strengthens digital capabilities

Negative

• None.

News Market Reaction

-0.60%

1 alert

-0.60% News Effect

On the day this news was published, STGW declined 0.60%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK and DUBAI, Dec. 30, 2024 /PRNewswire/ -- Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today announced it has entered into an agreement to acquire Create. Group, the Middle East's leading strategic digital communications group. The company will join Stagwell's Code and Theory Network, which is designed to partner with businesses to navigate the complexity of changing consumer behaviors, emerging technologies and AI.

With 15 years of expertise in digital strategy, products, content and innovation, Create. Group provides digital strategies that empower clients such as the Department of Culture & Tourism - Abu Dhabi (DCT), Dubai Department of Economy (DET) and Tourism, Sony Pictures, Volkswagen Middle East, COP29, Saudi Arabia's Public Investment Fund (PIF) and NEOM. Create. Group is headquartered in the UAE with additional offices in Saudi Arabia and Egypt.  

This deal comes as Stagwell cements its presence in MENA with recent acquisitions of Consulum and LEADERS, and on the heels of Create. Group winning Campaign's Middle East Digital Agency of the Year in 2022, 2023 and 2024, Campaign's Middle East Independent Agency of the Year 2023 and Adweek's Top 100 Fastest Growing Agencies in 2022 and 2023.  Create. Group joins Stagwell's Code and Theory Network alongside their flagship namesake agency who was named Ad Age Business Transformation Agency of the Year in 2024 for leading transformation through technology. Code and Theory Network is the first of its kind with a balance of 50% creative and 50% engineers at scale.

"As a digital leader in the region, Create. Group is a strong addition for Stagwell in the Middle East as we pursue global digital transformation for our clients. Create. Group and the Code and Theory Network share the same digital-led vision and together, we're the right size to produce quality, game-changing work that will drive growth at-scale for brands," shared Chairman and CEO of Stagwell Mark Penn.

Dan Gardner, Founder and Executive Chairman of Stagwell's Code and Theory Network added, "Create. Group is at the epicenter of a powerful emerging market with huge ambitions. The projects in the Middle East are some of the biggest projects in the world. And Create. Group excels at delivering them having just won its third digital agency of the year award. They will now be able to expand their capabilities within Code and Theory Network to deliver best-in-class results locally and beyond."

"Joining the Code and Theory and wider Stagwell network allows us to access world-class talent, cutting-edge technology, and a truly global footprint. This step fuels our growth, empowers our teams, and ensures we're ideally positioned to help deliver for the region's most ambitious brands," states Tom Otton, Founder and CEO of Create. Group.  

Otton will continue to lead Create. Group and will be integrated into Stagwell's Code and Theory Network, now boasting 2,000 team members worldwide, under Dan Gardner and CEO Michael Treff's leadership. 

The acquisition comes as Stagwell expands its global footprint and invests further in strategy and communications at the forefront of digital transformation. Create. Group is Stagwell's eleventh acquisition of 2024, following UNICEPTA (Germany), Consulum (MENA), LEADERS (MENA), Business Traveller (Global), BERA (U.S.), Luxine Relations Publiques (Canada), PROS (Brazil), What's Next Partners (France), Sidekick (U.K.) and Team Epiphany (U.S.). 

About Stagwell 
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 35+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.  

About Code and Theory Network
Code and Theory Network is the only network with a balance of 50% creative and 50% engineers at scale. The technology-first group within Stagwell is built to partner with businesses to navigate the complexity of changing consumer behaviors, emerging technologies and AI. With a global footprint and the capabilities to work across the entire consumer journey, we crave the hardest problems to solve. The network includes the flagship agency Code and Theory as well as Kettle, Instrument, Left Field Labs, Truelogic, Rhythm, and Mediacurrent. Code and Theory clients include Amazon, JPMorganChase, Microsoft, NBC, NFL and Yeti. For more, visit codeandtheory.com.
 
About Create. Group
Create. Group is the Middle East's leading strategic digital communications group, with a team of 150+ across the UAE, Saudi Arabia, and Egypt. The group consists of Create., the strategic digital communications agency, and Create. Production, the content production studio, under one shared mission: to partner with nation builders and visionary brands to drive positive cultural and economic transformation. Together, they deliver award-winning digital strategy, products, content, and innovation through a culture focused on driving impact with award-winning quality, at speed.  For more information visit www.creategroup.me or contact tala.mukaddam@creategroup.me.

Contacts: 
Kara Gelber  
Stagwell   
pr@stagwellglobal.com 

Kenneth Hein
Code and Theory 
kenneth.hein@codeandtheory.com 

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SOURCE Stagwell Inc.

FAQ

What is the strategic importance of Stagwell (STGW) acquiring Create. Group?

The acquisition strengthens Stagwell's presence in the MENA region and enhances its digital transformation capabilities through Create. Group's expertise in digital strategy, products, content, and innovation.

How many acquisitions has Stagwell (STGW) completed in 2024?

Create. Group is Stagwell's eleventh acquisition in 2024, following other acquisitions including UNICEPTA, Consulum, LEADERS, and Business Traveller.

What major clients does Create. Group bring to Stagwell (STGW)?

Create. Group brings prestigious clients including Department of Culture & Tourism - Abu Dhabi, Dubai Department of Economy and Tourism, Sony Pictures, Volkswagen Middle East, COP29, Saudi Arabia's Public Investment Fund, and NEOM.

What recent awards has Create. Group won before the STGW acquisition?

Create. Group won Campaign's Middle East Digital Agency of the Year in 2022, 2023, and 2024, Campaign's Middle East Independent Agency of the Year 2023, and was named in Adweek's Top 100 Fastest Growing Agencies in 2022 and 2023.

How will Create. Group be integrated into Stagwell's (STGW) structure?

Create. Group will join Stagwell's Code and Theory Network, with founder Tom Otton continuing to lead the company under Dan Gardner and CEO Michael Treff's leadership, as part of a 2,000-member global team.