The deal expands DG’s global media services platform for broadcast and online advertising more deeply into Canada: On 4/4 DG bought privately-held MIJO Corporation for Canadian $39.5 million in cash. Based in Toronto, MIJO provides broadcast and digital media services to the Canadian advertising, entertainment/ feature film and broadcast industries.
For 2010 MIJO reported revenues of Canadian $17.4 million. DG expects to recognize approximately $3.5 million in cost synergies during the initial 12 month period following close. Additional financial detail of the buy will be provided on DG’s Q1 conference call.
“MIJO is clearly a key player in Canada, which is just one factor that attracted us to the company, given DG’s efforts to build a worldwide media services platform for broadcast and online advertising,” said Neil Nguyen, President and COO of DG. “MIJO provides DG with a full service operating presence in Canada, and expands our platform to include all of North America, allowing DG to fully distribute its products, including Pathfire, Treehouse and Unicast, into the Canadian market.”
Both Mijo founders Joel Reitman and Michael Goldberg are expected to remain with the company together with the core group of 110 employees, assuring operating continuity for clients located throughout Canada.
The resources of the DG network, with its dual edge server footprint to distribute advertising, direct response and syndication content, will be located at 50 to 60 Canadian television broadcast sites, as well as all of Canada’s radio stations. The scale of the network, operating efficiencies and customer overlap provide significant opportunities for both growth and cost synergies.