DG Agrees to Acquire MediaMind for $419M; Enters $71B Global Online Ad Market

WSJ Dow Jones News Wire

Digital media services company DG FastChannel Inc. (DGIT) agreed to acquire digital-advertising software maker MediaMind Technologies Inc. (MDMD) in a deal valued at $418.5 million.

The deal is expected to increase DG’s global footprint and capabilities in television and online advertising.  The company has been acquisitive lately, buying privately held Mijo Corp. in April, expanding its reach into Canada.

MediaMind holders would receive $22 a share, a 38% premium to Wednesday’s close.  The company went public in August at $11.50 a share, well below its expected range.  Its all-time high is $17.88.

DG FastChannel, known as DG, said the acquisition is expected to add to its earnings next year.  MediaMind, which delivered campaigns for 9,000 brand owners last year, has an international footprint and broad agency relationship.

DG on Thursday also unveiled a three-year agreement with SmartJog, a unit of European-based TDF SAS, to establish a global content distribution system in over 70 countries and 5,000 broadcast stations as it continues its international expansion.

DG and MediaMind closed Wednesday at $28.89 and $15.94, respectively.  Neither were active premarket.