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J.P. Morgan, SunTrust Arrange $465MM Facility to Support Extreme Reach Acquisition

Date: Feb 11, 2014 @ 07:09 AM
Filed Under: Media

Extreme Reach, Inc., has completed its acquisition of the TV business of Digital Generation, Inc. for $485 million in cash. The combined company has revenues of $270 million and over 750 employees.

The acquisition was financed by a combination of existing cash, debt financing and new equity from existing investors of Extreme Reach. J.P. Morgan and SunTrust Robinson Humphrey acted as joint lead arrangers and joint book runners for the $465 million debt facility. Spectrum Equity, which invested $51 million in Extreme Reach in May 2013, invested an additional $35 million. All other Extreme Reach investors also participated in the financing: Village Ventures, Greycroft Partners and Long River Ventures. Berenson & Company acted as exclusive financial advisor and Pierce Atwood LLP acted as legal advisor to Extreme Reach in the transaction. Choate, Hall & Stewart acted as legal advisor to Spectrum Equity.

DG was a leading provider of distribution solutions for television advertising. Its offices and personnel will be immediately integrated into Extreme Reach. All DG TV customers and assets will be transitioned onto the Extreme Reach cloud platform. DG customers will immediately benefit because the platform offers greater efficiency, speed and reliability over the satellite and tape distribution model.

The Extreme Reach digital network is the world's largest and includes over 7,000 North American TV media destinations and thousands of online video publishers. The company's platform enables the execution of TV and online video advertising campaigns across every screen and device. Extreme Reach is also a leader in talent and rights management. The tabulation and management of talent royalties is automatic and completely integrated into the Extreme Reach platform and all online advertising and talent capabilities are immediately available to all former DG clients.

DG operated offices and broadcast advertising service facilities in thirteen markets across North America with headquarters in Irving, Texas. Prior to the acquisition, Extreme Reach also operated offices and facilities in seven of those markets. Extreme Reach headquarters is located in Needham, MA.

Extreme Reach is a leading provider of cross-media video advertising solutions that span TV, web, mobile and all other video media. The Extreme Reach video platform enables the seamless management, delivery and measurement of multi-screen advertising campaigns. The company's cross-media video ad delivery network is the largest in the world.

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