MediaMind sells to DG FastChannel for $517m
US-based advertising services company DG FastChannel has agreed to a $517m (£319.5m) price tag for New York-based digital advertising technology firm MediaMind Technologies, formerly known as Eyeblaster.
MediaMind: sells to DG FastChannel
The deal, which has been approved by the directors of both companies, means that DG will pay $22 per share for all of MediaMind's outstanding shares. MediaMind shareholders and certain officers and pre-IPO investors have agreed to tender their shares in the offer.
DG provides production and asset distribution services to the advertising, entertainment and broadcast industries, while MediaMind, with its 37 sales and representation offices across 64 countries, provides agencies and advertisers with digital display services.
Once the deal is finalised, Gal Trifon, MediaMind's chief executive and president, will become DG's chief digital officer. Chief solutions officer Ofer Zadikario will take up the same role at the parent company.
Scott Ginsburg, DG's chairman and chief executive, said: "This is a game-changing transaction that provides DG with an unmatched global footprint, broad customer reach and an innovative platform in television and the fast-growing online advertising market.
"MediaMind’s online business excels in rich media and fits well with our unparalleled distribution platform for high value broadcast content, enabling advertisers to most effectively connect with audiences globally."
Trifon said: "DG will provide us with the added scale and resources to continue to grow our platform and enhance the services we provide our customers. Working together with DG, we will provide a single solution for advertising creation, distribution, and monitoring for cross-platform campaigns."
DG said it expects to cut combined costs by $15m. The transaction is being funded by a mix of available cash and financing from JP Morgan Chase and Bank of America Merrill Lynch.
It is subject to regulatory approval and the companies hope that it will be closed in the third quarter of 2011.
Earlier this week Google agreed to acquire Admeld, the online advertising yield optimisation platform, for a reported $400m (£244m).
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