MONTREAL - Stagwell (NASDAQ: STGW), a network aiming to revolutionize marketing, has announced the acquisition of Montreal-based Luxine Relations Publiques, enhancing its commitment to the Quebec market. The full-service PR and Influencer Marketing agency will merge with Veritas Communications, forming LuxineVeritas, and intensifying their local presence.
Luxine's founder, Caroline Dubé, has been appointed as the Senior Vice President & Head of LuxineVeritas and will join the Veritas Executive Leadership Team. The acquisition responds to the growing demand for Quebec-tailored strategies, leveraging Luxine's 12-year legacy of serving A-List clients with a blend of corporate and consumer PR expertise.
The union aims to capitalize on Montreal's vibrant technology scene and creative talent. "Montreal is an important geography because of its deep technology roots and leading-edge creative talent," said Mark Penn, chairman and CEO of Stagwell.
Krista Webster, CEO of Veritas, emphasized the importance of local leadership, stating, "Quebec consumers are loyal and vocal and the market demands authentically local leaders that live and breathe Quebec."
Dubé's team, known for their seasoned PR, influencer, and social expertise, will join Veritas's Montreal office, now located in Luxine's premium space. This strategic move is expected to make a significant impact for national clients, with a focus on maintaining a personalized approach to media and client relationships in Quebec.
Veritas Communications is recognized as a creatively awarded Canadian PR agency with a history of integrating social and influencer offerings. Stagwell, on the other hand, prides itself on being a challenger network that combines creativity with technology to enhance marketing effectiveness for its clients.
This expansion is part of Stagwell's broader growth strategy, aiming to enhance service offerings for local markets across Canada. The information regarding this acquisition is based on a press release statement.
InvestingPro Insights
As Stagwell (NASDAQ: STGW) expands its footprint in the Canadian market with the strategic acquisition of Luxine Relations Publiques, the company's financial metrics and market activity offer insights into its current standing. With a market capitalization of $1.82 billion, Stagwell demonstrates a significant presence in the marketing industry.
Despite a challenging revenue growth rate in the last twelve months as of Q1 2024, which saw a decrease of 3.47%, the company's quarterly revenue growth for Q1 2024 shows a promising uptick of 7.65%. This suggests a potential rebound and a positive response to the company's growth strategies, including its recent acquisitions.
InvestingPro Tips highlight that management's aggressive share buybacks and a high shareholder yield position the company as proactive in creating shareholder value. Moreover, analysts have forecasted net income growth for Stagwell this year, aligning with the company's optimistic outlook post-acquisition. Still, it is worth noting that two analysts have revised their earnings expectations downwards for the upcoming period.
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