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Digital Media Distributor DG Systems to Acquire FastChannel for $25 Million

Authored by Mark Hefflinger on December 16, 2005 - 8:28am.
Needham, Mass. - FastChannel Network, a provider of digital media distribution and intelligence services to the advertising and broadcast industries, has agreed to merge with DG Systems, a Dallas-based provider of digital media distribution services. Under the agreement, DG Systems will issue Massachusetts-based FastChannel's shareholders about 52 million DG shares, which are traded on the Nasdaq and have a current value of about $0.50 a share. DG Systems shareholders will own about 59% of the combined company, while FastChannel shareholders will own about 41%. The combined company expects to have revenue of about $83 million in 2005.
tags: Deals | VC | Digital Media | DG Systems | FastChannel |