Portland digital agency Instrument has sold the remaining 49% of the agency to the company that holds the majority stake in the business. The deal has an aggregate purchase price of $160 million, according to regulatory filings.
In 2018, Instrument sold 51% to New York-based MDC Partners. Regulatory filings pegged that deal at $35.6 million. Last summer, MDC merged with Stagwell Marketing Group Holdings to create Stagwell Inc. (Nasdaq: STGW). Thursday, Stagwell announced it had acquired the remaining 49% of Instrument.
This deal replaces the previous agreement which included uncapped future earn out payments.
Instrument is based on North Williams and has more than 400 employees. It is one of Stagwell’s fastest growing agencies, according to the company. Instrument works with customers such as Nike, Google, Salesforce and Epic Games to build digital products and brand experiences.
The management will remain.
“We believe in Instrument's future with Stagwell and are pleased to take the final step into the network," said Instrument CEO Justin Lewis in a written statement. "We are looking forward to being a full part of Stagwell and the Constellation and to the growth and development opportunities this investment will provide for our team."
The deal includes a fixed payment spread across three years and split between cash and Stagwell shares, according to a news release. According to regulatory filings the first payment was made when the deal closed Dec. 31, 2021.
“This mutually beneficial structure provides Instrument's management with appropriate incentives for their efforts and creates significant shareholder value,” according to the release.
Stagwell Chairman and CEO Mark Penn noted that Instrument has grown 30% annually for the last two years.
“The entire leadership team has done an excellent job of growing their business while developing a culture of innovation, inclusion and outstanding client service,” Penn said in a written statement. “We are pleased to welcome Instrument into the network fully and to have Justin, JD (Hooge, co-founder and chief creative officer) and their team onboard for the next phase of the company's growth and development."
Instrument continues to grow. The company has several open positions listed on its website across strategy, technology, production and operations.
