DG Systems. Fastchannel Merge
December 16, 2005 at 3:27 AM (PT)
DG SYSTEMS is merging with digital media distribution competitor FASTCHANNEL NETWORK in a tax-free stock swap valued at $36 million. FAST CHANNEL Stockholders will get 52 million DG shares and DG will assume up o $10 million of FASTCHANNEL debt. The combined company expects 2005 revenues of $83 million ($58 million from DG, $25 million from FASTCHANNEL).
DG's SCOTT GINSBURG will be Chairman/CEO and FASTCHANNEL's JOHN ROLAND will be President and COO of the merged entity, while DG CFO OMAR CHOUCAIR will remain int he same capacity for the new company. Closing of the transaction is expected in first quarter or early second quarter 2006.