New York, NY, June 1, 2015 (NASDAQ: MDCA; TSX: MDZ.A) – MDC Partners Inc. (“MDC Partners” or the “Company”) announced today that it has completed the divestiture of its customer engagement business, ACCENT Marketing Services, to StarTek Inc., for $16 million in cash plus estimated working capital adjustments, for total proceeds of $18 million. The sale was completed effective as of May 31, 2015.
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”.
This press release contains forward-looking statements. The Company’s representatives may also make forward-looking statements orally from time to time. Statements in this press release that are not historical facts, including statements about the estimated amount of working capital adjustments relating to the Accent divesture, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:
· risks associated with the Subpoena and ongoing SEC investigation;
· risks associated with severe effects of international, national and regional economic downturn;
· the Company’s ability to attract new clients and retain existing clients;
· the spending patterns and financial success of the Company’s clients;
· the Company’s ability to retain and attract key employees;
· the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to “put” option right and deferred acquisition consideration;
· the successful completion and integration of acquisitions which complement and expand the Company’s business capabilities; and
· foreign currency fluctuations.
Investors should carefully consider these risk factors and the additional risk factors outlined in more detail in the Annual Report on Form 10-K under the caption “Risk Factors” and in the Company’s other SEC filings.
Matt Chesler, CFA, MDC Partners
VP, Investor Relations
SVP, Corporate Communications, MDC Partners