DG FastChannel has entered into a definitive agreement with Level 3 Communications to acquire the Vyvx advertising services business including its distribution, post-production and related operations. DG FastChannel will pay Level 3 129 million in cash.
Said Scott Ginsburg, DG FastChannel CEO: “Vyvx’s blue chip customer base will gain access to DG FastChannel’s omnipresent, state-of-the-art electronic network…The business combination we are announcing today will expand our opportunities to establish unified digital marketing solutions for multiple video platforms being developed for broadcast, cable, Internet and mobile advertising…During the next 14 months, U.S. television and cable operators are converting to a digital broadcast and an HD environment. As they do, DG FastChannel will have the resources necessary to deploy an ‘HD Extreme’ network and fulfill the demands of transmitting HD advertising content to broadcast-based media outlets.”
Vyvx is expected to generate 36 million of revenue and 11 million of EBITDA for the year ending December 31, 2007. DG FastChannel expects to act on 7 million to 9 million of identified operational synergies within one year of the closing.
