Extreme Reach Inc agreed to buy Digital Generation's TV business for USD 485 million. The cash deal would also include the acquisition of advertising distribution business unit of Digital Generation (DGIT). As a result, DGIT would not be able to offer broadcast-related services to clients anymore. Spectrum Equity, owner of Extreme Reach, would be pouring in USD 47 million to enable its portfolio firm to facilitate the purchase. Debt financing would also be provided by JP Morgan and SunTrust Robinson Humphrey.
Shareholders of DGIT would still need to approve the acquisition. The first step of the transaction would be for DGIT to distribute its online business to shareholders through a new publicly-traded company. Extreme Reach would buy the remainder of the DGIT business as directed by a cash merger.
Extreme Reach aims to deliver management, delivery and analytics solutions under one roof. Their single technology platform spans all forms of media, including traditional TV, online, mobile and other video media.
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