DG FastChannel And Enliven Merge As DG Revs Up In Q1
May 8, 2008 at 5:41 AM (PT)
DG FASTCHANNEL and ENLIVEN MARKETING TECHNOLOGIES have entered into a definitive agreement to merge in a stock-for-stock transaction. The proposed transaction values ENLIVEN at approximately $98.0 million, inclusive of approximately $4.5 million of ENLIVEN’s debt.
Commenting on the transaction, DG FASTCHANNEL Chairman/CEO SCOTT K. GINSBURG said, "The merger with ENLIVEN increases the breadth of our next generation, digital media platform and brings our customers an integrated advertising solution featuring state-of-the-art technologies. The incredible growth rates for online media, and specifically rich media advertising, have taken the world by storm, and brands and advertisers are seeking efficient solutions that bridge the gulf between traditional and new media. This merger brings together two innovative companies, one whose history and expertise has been focused on traditional media distribution and the other whose core competencies are in the new media sector. The combined company will deploy a robust platform for advertisers and agencies to harmonize both ‘offline’ and ‘online’ advertising campaigns."
DG Reports Financials
In Q1 2008, revenue of $29.2 million was reported, as compared to $19.9 million in the same period of 2007. Adjusted EBITDA (earnings before interest, taxes, unrealized investment gains and losses, depreciation and amortization) of $10.4 million for the three months ended MARCH 31, 2008 compared to $6.6 million in the comparable period of 2007.
First quarter 2008 income from continuing operations of $3.2 million, or $0.17 per diluted share, inclusive of a $1.1 million pre-tax charge, or $0.04 per diluted share for the reduction in fair value of a derivative instrument, compared with income from continuing operations of $2.3 million, or $0.15 per diluted share in the first quarter of 2007.
First quarter 2008 revenue from the delivery of high definition (HD) content rose to $3.7 million, compared with $1.0 million in the first quarter of 2007.