Stagwell (NASDAQ: STGW) acquires digital ad assets with stock and earn-outs

Rhea-AI Filing Summary

Stagwell Inc. has acquired substantially all assets of a digital advertising company. At closing on January 30, 2026, Stagwell paid $5.625 million of the purchase price by issuing 863,624 shares of its Class A common stock.

The agreement also provides for two contingent earn-out payments based on the acquiree’s financial performance over two separate two-year periods beginning January 31, 2026 and January 31, 2028. Stagwell may elect to pay up to $5.375 million of the first earn-out and up to $7.0 million of the second earn-out in its stock. The share issuances are made in a private transaction exempt from registration under Section 4(a)(2) of the Securities Act, and Stagwell will receive no cash proceeds from issuing these shares.

Insights

M&A and capital structure analyst

Stagwell buys a digital ad business using stock and performance-based earn-outs.

Stagwell Inc. is expanding in digital advertising by acquiring substantially all assets of a digital advertising company. It paid $5.625 million at closing through 863,624 newly issued Class A shares, emphasizing equity-funded consideration rather than cash.

The agreement includes two performance-based earn-outs tied to two-year periods starting January 31, 2026 and January 31, 2028. Stagwell may pay up to $5.375 million for the first and up to $7.0 million for the second in stock, linking additional consideration to the acquired business’s results.

The stock is issued in a private transaction exempt from registration under Section 4(a)(2), with no cash proceeds to Stagwell and no commissions. Future disclosures in company filings may detail how much of the potential earn-outs is ultimately paid and in what mix of stock versus other forms of consideration.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2026

STAGWELL INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-13718	86-1390679
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One World Trade Center, Floor 65, New York, NY 10007

(Address of principal executive offices and zip code)

(646) 429-1800

(Registrant’s Telephone Number)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value	STGW	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 3.02 Unregistered Sales of Equity Securities.

On January 30, 2026, Stagwell Inc. (the “Company”) entered into an agreement (the “Agreement”) to purchase substantially all of the assets of a digital advertising company (the “Acquiree Company”) from the owners of the Acquiree Company (the “Sellers”). Pursuant to the Agreement, at closing of the transaction on January 30, 2026, the Company issued 863,624 shares of Class A common stock of the Company (“Stagwell Stock”) in payment of $5.625 million of the amount payable at closing. In addition, pursuant to the Agreement, the Company has a contingent obligation to make a payment based on the Acquiree Company’s achievement of specified financial performance criteria for the two-year period beginning January 31, 2026 and a contingent obligation to make a second payment based on the Acquiree Company’s achievement of specified financial performance criteria for the two-year period beginning January 31, 2028. The Company may elect to pay up to a maximum of $5.375 million of the first contingent payment, if any, and up to a maximum of $7.0 million of the second contingent payment, if any, in Stagwell Stock.

The issuance of Stagwell Stock to the Sellers pursuant to the Agreement is exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. The Company will receive no cash proceeds and no commissions will be paid to any person in connection with the issuance.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 5, 2026

	STAGWELL INC.
	By:	/s/ Peter McElligott
		Peter McElligott
		General Counsel

FAQ

What transaction did Stagwell Inc. (STGW) disclose in this 8-K?

Stagwell Inc. disclosed that it acquired substantially all of the assets of a digital advertising company. The deal closed on January 30, 2026 and uses a mix of upfront stock consideration and potential future performance-based payments.

How much did Stagwell (STGW) pay at closing for the digital advertising assets?

At closing, Stagwell paid $5.625 million of the purchase price by issuing 863,624 shares of its Class A common stock. This equity-based consideration reflects the amount payable at closing rather than a cash payment to the sellers.

What are the contingent earn-out payments in Stagwell’s (STGW) acquisition?

The agreement provides two contingent payments based on the acquiree’s financial performance over two-year periods starting January 31, 2026 and January 31, 2028. Each payment depends on specified performance criteria and may increase total consideration if targets are achieved.

Can Stagwell Inc. (STGW) pay the earn-out obligations in stock?

Yes. Stagwell may elect to pay up to a maximum of $5.375 million of the first contingent payment and up to a maximum of $7.0 million of the second contingent payment in its Class A common stock, depending on the acquiree’s performance.

Does Stagwell (STGW) receive any cash from issuing stock in this deal?

No. Stagwell will receive no cash proceeds from issuing its Class A common stock to the sellers. The shares are used solely as acquisition consideration, and no commissions are paid in connection with the stock issuance.

Is the stock issued in Stagwell’s (STGW) acquisition registered with the SEC?

The stock issued to the sellers is not registered under a public offering. It is issued in a private transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, according to the disclosure.