Adding to its agency portfolio, the Stagwell Group has announced that it has acquired a majority stake in Code and Theory, a digital creative shop based in New York with offices in Atlanta, London, San Francisco, and Manila, the Philippines. Code and Theory was founded in 2001 by Dan Gardner and Brandon Ralph and creates products, content and campaigns for leading companies across physical and digital worlds. The agency employs more than 300 staffers across five offices and is best known for handling various interactive chores for clients including Bloomberg, Burger King, The Huffington Post, Mashable, Maybelline and Vogue. In December, the agency added digital work from insurer New York Life.
The Stagwell Group has announced that it has acquired a majority stake in Code and Theory, a digital creative shop based in New York
Stagwell is led by managing partner and president Mark Penn, a former executive with WPP Group and Microsoft, who has also served as a pollster and adviser to Bill and Hillary Clinton. Penn launched the investment company last year with a $250 million war chest and an eye toward playing in the media and marketing arena, with a focus on digital. Penn said of the acquisition: “ Digital is a critical and core part of our strategy. Few firms have the state-of-the art experience that Code and Theory brings to the table in a digital space. Under Dan and Brandon's leadership, we are excited about Code and Theory's future as part of our digital marketing services portfolio of companies.”
Stagwell is led by managing partner and president Mark Penn, a former executive with WPP Group and Microsoft
With over three hundred professionals around the world, Code and Theory has been recognised as a leading international firm. In 2014, the agency was recognised by Advertising Age as an “Agency to Watch,” and in 2015, it was listed by Fast Company as one of the world's “Most Innovative Companies.” Agency co-founders Gardner and Ralph, said: “We are a company full of creative people, not traditional businesspeople, and we believe Stagwell Group is the right partner as we continue to grow our firm and do great work for our clients. Code and Theory is very proud of what we've accomplished as a team. We're looking forward to working with Stagwell to take our company to the next level.”
Code and Theory will continue to operate independently within Stagwell Group LLC as a stand-alone agency run by the current management team
Dan Gardner and Brandon Ralph (centre) at the 17th annual Webby Awards
Code and Theory will continue to operate independently within Stagwell Group LLC as a stand-alone agency run by the current management team. Co-founders Dan Gardner and Brandon Ralph continue to hold minority ownership stake. Code and Theory was represented by AdMedia Partners, Inc. The terms of the deal were not disclosed. This is Stagwell's third and largest (in terms of employees) acquisition in the marketing services industry, joining strategic communications firm SKDKnickerbocker and entertainment research firm National Research Group (NRG). The fund previously announced it has raised $250 million in capital and may leverage that to make up to $750 million in acquisitions.
