MDC Partners’ Business Combination With Stagwell Media

Cleary Gottlieb represented MDC Partners in its business combination transaction with Stagwell Media. Torys LLP assisted Canaccord Genuity, financial advisor to the Special Committee of MDC.

The transaction signed on December 21, 2020 and is expected to close in the first half of 2021 subject to customary closing conditions, including shareholder and regulatory approval.

Under the terms of the transaction and without giving effect to any conversion of outstanding preference shares, the pre-transaction holders of MDC Class A and Class B shares would receive 26% of the common equity of the combined company and Stagwell would receive share consideration equal to 74% of the common equity of the combined company (excluding Stagwell’s pre-transaction ownership of MDC Shares), each on a pro forma basis.

Based in New York City, MDC is one of the most influential marketing and communications networks in the world. The Stagwell Group is the first and only independent, digital-first and fully-integrated organization of size & scale servicing brands across the continuum of marketing services. The combined company will provide the balance of integrated solutions that modern marketers need to succeed, including second-to-none creativity and communications, scaled media and data capabilities, superior consumer insights, technology development and innovation and digital transformation.

The Cleary M&A team advising MDC included partner Kim Spoerri (Picture) and associates Brennan Halloran, Sheldon Hughes, Blaise Ross and Grace Gao. Partner Corey Goodman and associates Kylie Barza and Sheridan DuPont advised on tax matters. Partner Adam Fleisher, counsel Helena Grannis and associates David Taub, Stephanie Fontana and Ethan Back advised on capital markets matters. Partner Michael Albano, counsel Kathleen Emberger and associates Stephanie Edel and Shelbi Vaughn advised on U.S. employee benefit matters and counsel Melissa Reid and trainee solicitor Benjamin Bolderson advised on UK employee benefit matters. Partner Jim Ho and associate Philip Herbst advised on financing matters. Partner Daniel Ilan, associates Natalie Farmer, Michelle Elsner, Evelina Yarmit and trainee solicitor Louie Ka Chun advised on intellectual property, cybersecurity and data privacy matters. Senior attorney Jim Corsiglia advised on sanctions and anticorruption matters. Counsel Beau Sterling advised on environmental matters. Senior attorney Joshua Panas and associate Ann Marie Hovey and advised on real estate matters.

The Torys team included John Emanoilidis, Daniel Masliyah, Stephen Abrahamson and Marco Cator (corporate/M&A).

Involved fees earner: Michael Albano – Cleary Gottlieb Steen & Hamilton; Ethan Back – Cleary Gottlieb Steen & Hamilton; Kylie Barza – Cleary Gottlieb Steen & Hamilton; James Corsiglia – Cleary Gottlieb Steen & Hamilton; Virginia DuPont – Cleary Gottlieb Steen & Hamilton; Stephanie Edel – Cleary Gottlieb Steen & Hamilton; Michelle Elsner – Cleary Gottlieb Steen & Hamilton; Kathleen Emberger – Cleary Gottlieb Steen & Hamilton; Natalie Farmer – Cleary Gottlieb Steen & Hamilton; Adam Fleisher – Cleary Gottlieb Steen & Hamilton; Stephanie Fontana – Cleary Gottlieb Steen & Hamilton; Grace Gao – Cleary Gottlieb Steen & Hamilton; Corey Goodman – Cleary Gottlieb Steen & Hamilton; Helena Grannis – Cleary Gottlieb Steen & Hamilton; Brennan Halloran – Cleary Gottlieb Steen & Hamilton; Philip Herbst – Cleary Gottlieb Steen & Hamilton; Jim Ho – Cleary Gottlieb Steen & Hamilton; Ann Marie Hovey – Cleary Gottlieb Steen & Hamilton; Sheldon Hughes – Cleary Gottlieb Steen & Hamilton; Daniel Ilan – Cleary Gottlieb Steen & Hamilton; Joshua Panas – Cleary Gottlieb Steen & Hamilton; Melissa Reid – Cleary Gottlieb Steen & Hamilton; Blaise Ross – Cleary Gottlieb Steen & Hamilton; Kimberly Spoerri – Cleary Gottlieb Steen & Hamilton; Beau Sterling – Cleary Gottlieb Steen & Hamilton; David Taub – Cleary Gottlieb Steen & Hamilton; Shelbi Vaughn – Cleary Gottlieb Steen & Hamilton; Evelina Yarmit – Cleary Gottlieb Steen & Hamilton; Stephen Abrahamson – Torys LLP; Marco Cator – Torys LLP; John Emanoilidis – Torys LLP; Daniel Masliyah – Torys LLP;

Law Firms: Cleary Gottlieb Steen & Hamilton; Torys LLP;

Clients: Canaccord Genuity; MDC Partners Inc.;

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Author: Ambrogio Visconti