12.28.2007 12:00 AM
DG FastChannel to Acquire Vyvx Ad Services for $129M
will acquire the Vyvx
ad services business from Level 3 Communications.
The price tag is $129 million.
DG Chairman/CEO Scott Ginsburg said in the announcement, “The ‘digital convergence’ and integrated marketing solutions being introduced by media giants such as Google and Microsoft together with innovative technologies from many other companies have created new competitive challenges for providers of advertising services.”
He said the deal will expand DG’s opportunities to “establish unified digital marketing solutions for multiple video platforms being developed for broadcast, cable, Internet and mobile advertising.” He noted that U.S. television and cable operators are converting to a digital broadcast and HD environment.
DG FastChannel obtained financing from BMO Capital Markets. The company is currently in debt for $36 million, which will increase to $170 million. DG will assume regional operating offices in New York, Chicago, Delaware, Memphis and Los Angeles and a stand-alone network operations center in Tulsa. The deal is pending regulatory approvals.
The Vyvx acquisition closes out a busy year for DG FastChannel, which also acquired Pathfire