MDC Partners

History

MDC Partners was founded as Multi Discipline Communications in 1980 in Toronto by Miles Nadal. The company held an IPO on October 16, 1987.

The company operated two divisions in the 1990s: Marketing and Communications and Secure Transaction Products, which included the production of checks, credit and debit cards, tickets, and stamps. Toward the end of the 1990s, MDC concentrated on growing its marketing and communications business. It continued to expand into the United States, surpassing CAD$1 billion in revenue in 2000 through acquisitions and organic growth.

In 2001, MDC formed its first partnership with the agency Crispin Porter + Bogusky.

In January 2004, the company changed its name to MDC Partners Inc.

In 2008, MDC became the first advertising company to build a capability designed for automated, or programmatic media trading, with the formation of Varick Media Management.

The company acquired Anomaly in 2010 and 72andSunny in 2011.

On July 21, 2015, Miles Nadal announced his resignation as CEO in response to an investigation by the U.S. Securities and Exchange Commission regarding executive pay and accounting practices. Nadal agreed to pay back $1.9 million in expenses and $10.6 million in salary and bonuses. He did not receive any severance or compensation for resigning. Chief accounting officer Michael Sabatino also announced his resignation and would reportedly repay $208,000 in bonuses. MDC's presiding director of the board, Scott Kauffman, succeeded Miles Nadal as chairman and CEO.

In December 2015, the company ranked 8th in Advertising Age’s global ranking of Agency Networks, by cumulative award wins. In June 2016, MDC announced the first acquisition under Kauffman of Swedish creative agency Forsman & Bodenfors, forming a strategic partnership with sister agency CP+B.

In April 2018, MDC acquired a 51% majority stake in digital creative agency Instrument for an undisclosed amount.

In March 2019, Mark Penn was named CEO of MDC Partners, and The Stagwell Group invested $100 million in the company.

Operations

Company overview

MDC Partners is a global advertising holding company that invests in agency partners in the areas of advertising, marketing, media management, technology, analytics and consumer insights, direct marketing, and strategic consulting. The company is headquartered in New York City and also operates a corporate office in Toronto, where it was founded. It earned approximately US$1.33 billion in revenue 2015.

MDC typically invests in creative and digital firms. Historically, it invested in agencies during times when similar companies have scaled back on acquisitions. While the company has mainly invested in North American small to mid-sized agencies, it extended onto new global markets in the 2010s. As of 2015, 9% of the company's revenue came from outside North America.

MDC does not generally acquire agencies outright, but instead partners with agency management by acquiring a 51 to 80 percent initial stake. It operates a Strategic Resources Group, which supports the development of partner agencies. In 2004, Adweek called the company an "anti-holding company".

Partner Companies

Major holdings include over 50 advertising and marketing firms:

• 6 Degrees
• 72andSunny
• Albion
• Albion Drive
• Allison+Partners
• Anomaly
• Antidote 360
• Assembly
• Attention
• BOOM Marketing
• BORN A.I.
• Bruce Mau Design
• CIVILIAN
• Colle McVoy
• Concentric Health Experience
• Crispin Porter + Bogusky
• Doner
• Exponent Public Relations
• Forsman & Bodenfors
• Gale Partners
• Hello Design
• HL Group
• Hudsun Media
• Hunter Public Relations
• Instrument
• Kenna
• KWT Global (formerly Kwittken)
• Laird+Partners
• Legend
• MDC Media Partners
• mono
• Northstar
• Path Worldwide
• Real Interactive
• Redscout
• Rel
• Sloane & Company
• Source
• Storyline Strategies
• TEAM Enterprises
• The Media Kitchen
• TradeX Partners
• UNION
• Unique Influence
• Varick
• Veritas Communications
• VITRO
• Wolfgang
• Yamamoto
• Y Media Labs

References

References

1. "MDCA Company Profile". Wall Street Journal.
2. Eric Lam. (12 November 2013). "MDC Partners Soars Selling Burgers on Facebook". [[Bloomberg L.P..
3. "Company Overview of MDC Partners Inc.". Bloomberg.
4. Jeff Beer. (16 November 2011). "Is this guy a mad man?". [[Canadian Business]].
5. (2004). "International Directory of Company Histories". St. James Press.
6. Susan Krashinsky. (29 May 2014). "MDC's challenge: 'Everything you know about advertising is going to be useless on Monday'". [[The Globe and Mail]].
7. Stuart Elliott. (1 July 2010). "Bogusky, Creative Ad Star, Is Leaving Advertising". Media Decoder.
8. "Company Description". [[Bloomberg L.P..
9. (8 September 2008). "The First Advertising Hedge Fund". [[AdWeek]].
10. Rupal Parekh. (9 March 2011). "Miles Nadal on How His Holding Company Handles Recruitment". [[Advertising Age]].
11. Tadena, Nathalie. (21 July 2015). "MDC Partners CEO Miles Nadal Steps Down Amid SEC Investigation". Wall Street Journal.
12. (28 April 2015). "MDC Partners' Stock Plummets After News of SEC Probe Into CEO's Expenses".
13. Natalie Zmuda. (21 July 2015). "Ten Things You Don't Know About MDC's New CEO". [[Advertising Age]].
14. (2015-07-20). "Scott Kauffman Appointed Chairman and CEO of MDC Partners; Miles Nadal Retires; Company Reaffirms Annual Guidance".
15. (21 December 2015). "The Awards Report 2015". [[Advertising Age]].
16. Suzanne Vranica. (29 June 2016). "MDC to Buy Swedish Agency Forsman & Bodenfors". [[The Wall Street Journal]].
17. Inc., MDC Partners. "MDC Partners Enters into Strategic Partnership with Instrument, a Leading Independent Digital Agency".
18. Alexandra Bruell. (14 March 2019). "Mark Penn's Stagwell Group Takes Stake in MDC Partners". [[The Wall Street Journal]].
19. Eric Lam. (12 November 2013). "MDC Partners Soars Selling Burgers on Facebook". [[Bloomberg L.P..
20. "Company Description". [[Bloomberg L.P..
21. Jason Tannahill. (16 October 2015). "MDC Partners Trying to Repair the Damage". Everything PR.
22. Alexandra Bruell. (19 February 2016). "MDC Stock Up Almost 10% Day After Reporting Fourth-Quarter Earnings". [[Advertising Age]].
23. Rupal Parekh. (10 May 2010). "MDC CEO on Spending Sprees, Selling Potential and Why U.S. Is Best". [[Advertising Age]].
24. (2004). "International Directory of Company Histories". St. James Press.
25. Jeff Beer. (16 November 2011). "Is this guy a mad man?". [[Canadian Business]].
26. Kristina Monllos. (11 August 2014). "Lori Senecal Named President, CEO of the MDC Partner Network Ed Brojerdi takes the reins of kbs+". [[Adweek]].
27. Nathalie Tadena. (26 February 2016). "MDC Partners' New CEO Tries to Turn the Page After Tumultuous Stretch". [[The Wall Street Journal]].
28. Douglas Quenqua. (29 February 2016). "MDC chief Scott L. Kauffman puts a new face on Nadal's vision". [[Campaign (magazine).
29. "MDC Partners Acquires Majority Stake in PR Firm".
30. "Agencies".