DG, digital media distributor for the advertising, entertainment and broadcasters, announced a deal to acquire Limelight Networks EyeWonder video and rich media advertising unit for $66 million in cash. The transaction is expected to be accretive to DG’s 2012 GAAP Earnings Per Share.
EyeWonder provided of interactive digital ad products and services, including online video and rich media solutions, serving Fortune 1000 companies and marketers around the globe. In addition to helping advertisers, interactive agencies and content publishers create, build, track and optimize campaigns, EyeWonder is recognized for its technological expertise around targeting. EyeWonder Predictive Behavioral Targeting served over 3.5 billion targeted impressions in the most recent quarter.
“To fulfill our vision of converging TV and online media, we require a strong global position in online advertising,” said Neil Nguyen, President and COO of DG. “By joining EyeWonder with Unicast and MediaMind we are strategically establishing an online media powerhouse. We are delighted to welcome our new colleagues to DG.”
DG expects EyeWonder to generate revenues of approximately $36 million to $37 million for FY 2011. In addition, DG anticipates $7.0 million in cost synergies in the first 12 months following the close of the buy, expected to be on 9/1.