DG FastChannel to Acquire GTN Inc. for $11.5 Million
DG FastChannel Inc. has agreed to purchase privately held GTN Inc., for $11.5 million cash, the Irving, Texas-based media services company said this week.
Detroit-based GTN provides advertising media services including distribution for standard definition and high definition commercials, production, post-production, asset management and archival services. It focuses mainly on the automotive advertising market. The Detroit-based company said in 2006, it generated about $15.8 million in revenue, 32 percent of which were generated by the ads distribution operations.
DG FastChannel expects its management of GTN’s ads distribution operations to generate EBITDA margins of about 35 percent and believes the transaction will be accretive to its operating results.
Scott K. Ginsburg, chairman and CEO of DG FastChannel said the acquisition of GTN further diversifies the company’s ads distribution revenue base and customer lists, as well as strengthens DG FastChannel’s presence in Detroit.
The acquisition marks the third transaction for DG FastChannel in as many months. In April, the company announced it was acquiring Pathfire. It has also agreed to acquire the advertising operations of Point.360.
Upon completion of the transaction, DG FastChannel intends to divest GTN’s non-core production and post-production assets and operations. The deal is expected to close in the third quarter.
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