DG Gets Major Shareholder's Backing For Sale Of Radio/TV Ad Distribution Business
October 9, 2013 at 4:38 AM (PT)
DG (DIGITAL GENERATION, INC.) has reached agreement with a major shareholder, which will support the company's sale of its radio and TV ad spot delivery business to EXTREME REACH, INC.
The shareholder agreement, reached on MONDAY and announced in filings with the SEC, is with the ALEX MERUELO LIVING TRUST, MERUELO INVESTMENT PARTNERS LLC and ALEX MERUELO, collectively holders of 4,023,570 shares of DG stock. The MERUELO interests have agreed to vote in favor of the merger with EXTREME REACH and any candidates DG nominates to the board, and will get the right to appoint one director and nominate three others to the board of post-deal DG, which will continue as an online subsidiary. The deal is expected to close in the first quarter of 2014.