DGIT to Acquire MediaMind Technologies Inc. (NASDAQ:MDMD) at $22/share


On June 16, 2011, MediaMind Technologies Inc. (NASDAQ:MDMD) surged 37.89% after the company agreed to be acquired by DG FastChannel, Inc.

DG FastChannel (DGIT) entered into an agreement to acquire MediaMind Technologies (MDMD) in an all-cash transaction at $22/share, a 40% premium to yesterday’s close. The transaction has been approved by the boards of directors of both companies, and is expected to close in the third fiscal quarter of 2011. Total transaction value is $517 million in equity or $414 million in enterprise value, taking into account over $100 million in cash on MediaMind’s balance sheet. The transaction would be funded by a combination of available cash and fully committed debt financing.

With the MediaMind acquisition, DG expects to realize $15 million in cost synergies identified to date, with opportunities for enhanced revenue growth. The deal is expected to be accretive to DG’s non-GAAP earnings per share in 2012. The Company shareholders holding approximately 8.2M common shares outstanding and 1.8M options, as well as certain officers and pre-IPO investors, have agreed to tender their shares in the offer.

Shares of the company jumped 37.89% at $21.98 with volume of 2.94 million shares traded. The stock climbed to new annual high of $22.49, its annual low being $10.22. The market cap of the stock stands at $417.92 million with P/E of 44.77.

MediaMind Technologies Inc. (MediaMind), formerly Eyeblaster, Inc., is a global provider of digital advertising campaign management solutions to advertising agencies and advertisers.

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