Divestiture to Allow MDC to Continue Investing in Strategic Opportunities of Greatest Growth
New York, NY, May 11, 2015 – MDC Partners Inc. (NASDAQ: MDCA; TSX: MDZ.A) announced today that, as part of its ongoing strategy to optimize its strategic positioning and shareholder value, it has entered into a definitive agreement to divest its customer engagement business, ACCENT Marketing Services, to StarTek Inc., for $16 million in cash, plus working capital adjustments. Closing is expected on May 31, 2015.
“We are very pleased to have reached a definitive agreement for the sale of ACCENT that creates value for MDC Partners and will allow ACCENT to thrive,” said Miles Nadal, Chairman and CEO of MDC Partners. “This transaction underscores our stated commitment to focus our capital deployment on the areas of our business that maximize our value proposition, enhance our sustainable point of differentiation, and further accelerate all of MDC’s financial metrics of performance.”
“The sale of ACCENT allows MDC to emerge as an even faster-growing, higher margin and less capital-intensive business overall, centered on the activities that we expect will deliver the most growth in value to our shareholders over the long-term,” added David Doft, Chief Financial Officer of MDC Partners.
About MDC Partners Inc.
MDC Partners is one of the world’s largest Business Transformation Organizations that utilizes technology, marketing communications, data analytics, insights and strategic consulting solutions to drive meaningful returns on Marketing and Communications Investments for multinational clients in the United States, Canada, and worldwide.
MDC Partners’ durable competitive advantage is to Empower the Most Talented Entrepreneurial Thought Leaders to Drive Business Success to new levels of Achievement, for both our Clients and our Shareholders, reinforcing MDC Partners’ reputation as “The Place Where Great Talent Lives.”
MDC Partners’ Class A shares are publicly traded on NASDAQ under the symbol “MDCA” and on the Toronto Stock Exchange under the symbol “MDZ.A”.
Matt Chesler, CFA
VP, Investor Relations
SVP, Corporate Communications, MDC Partners