Business Services Industry
DG FastChannel and Enliven Marketing Technologies to Merge Creating Leading Digital Advertising Solutions Company
Business Wire, May 8, 2008
Combined Entity to Offer Advanced Digital Media Services, Ad Distribution, Internet Marketing and Online and Mobile Advertising Solutions
Transaction Valued at Approximately $98.0 Million
DALLAS & NEW YORK -- DG FastChannel, Inc. (NASDAQ: DGIT) and Enliven Marketing Technologies Corporation (NASDAQ: ENLV):
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DG FastChannel, Inc. (NASDAQ: DGIT) and Enliven Marketing Technologies Corporation (NASDAQ: ENLV) ("Enliven") announced today that they have entered into a definitive agreement to merge in a stock-for-stock transaction. The merger will combine DG FastChannel's leadership in traditional advertising and media distribution services with Enliven's groundbreaking digital marketing technologies for online, mobile and in-game advertising solutions. The proposed transaction values Enliven at approximately $98.0 million, inclusive of approximately $4.5 million of Enliven's debt. The transaction firmly establishes DG FastChannel as a full participant in the Internet and mobile advertising space.
The world's most esteemed brands and agencies rely upon DG FastChannel to manage and distribute their valuable advertising assets including national and local television and cable, radio, and print advertising content. DG FastChannel entered the new media sector in mid-2007, when it acquired a 12% equity ownership interest in Enliven Marketing Technologies. As a combined entity, DG FastChannel and Enliven will address the video market of the future more effectively, and the business combination will enhance the prospects of each company.
Commenting on the transaction, Scott K. Ginsburg, Chairman and CEO of DG FastChannel 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.
"Both DG FastChannel and Enliven have developed best-in-class advertising toolsets, and provide the advertising community with advanced digital marketing solutions. Given the proliferation of video outlets spanning traditional media outlets and Internet, mobile and other emerging new media distribution points, there is a compelling opportunity for the combined entity to provide advertisers with an easy-to-use, single workflow platform to meet the complex demands of the rapidly evolving media landscape.
"Our joint vision is to reach every critical viewing consumption point, provide workflow tools and related digital media services, and help advertisers generate efficiencies and the highest possible return on their marketing investments."
The combined company will provide a broad range of digital media services including:
* Traditional media distribution capabilities reaching television, cable, and television and cable networks, radio stations, and print outlets;
* Digital technology services including one of the industry's most innovative rich media ad solutions, 3-D, Hologram, HD3D applications, campaign management, mobile and Internet ad delivery and flexible reporting toolsets via the Unicast brand infrastructure;
* Best-in-class digital marketing strategy, creative, media planning and website development services leveraging the SpringBox interactive agency brand;
* Post production media services performed throughout seven full service U.S. service centers and three international offices;
* Online business intelligence products including the world's largest searchable database of television advertisements leveraging its SourceECreative[R] brand; and,
* Digital asset management and order management systems for ingest, archiving and collaborating virtually every type of media asset.
"Customers are demanding integrated solutions that facilitate management of rich and emerging digital marketing content across all medium," said Patrick Vogt, CEO of Enliven. "By combining DG FastChannels' innovative media solutions with Enliven's unique Internet marketing and advertising technology, we will deliver a technology platform that will drive efficiencies and enhancements across the entire advertising value chain. Furthermore, DG FastChannel shares our industry vision and complements our strengths, namely technology leadership and customer focused innovation."
Enliven's Unicast technology enables publishers, advertisers, and their agencies to manage the complex process of deploying online and mobile advertising campaigns. This process includes creating the advertising assets, selecting the sites on which the advertisements will be deployed, setting the campaign parameters (ad rotation, the frequency with which an ad may be deployed, and other metrics), deployment, and tracking campaign results. Unicast was designed to integrate creative assembly with campaign management and detailed performance analysis. In addition, Unicast has broad capabilities to deliver ad formats and media types, including several different video formats, 3-D content, and all classic and custom rich media ad units. Unicast is technology agnostic, delivering advertisements that work seamlessly with all industry technologies and formats.
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