VisionChina Media to Acquire Digital Media Group for USD 160 Mln
PR Newswire Asia, 10/15/09
Shenzhen-based mass-transit digital advertising operator VisionChina Media (Nasdaq: VISN) has announced an agreement to acquire Digital Media Group (DMG), another public transport digital media network operator, giving VisionChina the largest in-vehicle display network in the country. The total consideration is USD 160 mln in cash and shares payable to eligible DMG shareholders in three installments over two years, including a first installment of USD 100 mln payable at the closing of the transaction, to be followed by two subsequent installments of USD 30 mln each to be paid on the first and second anniversaries of the closing. Of the initial USD 100 mln, USD 40 mln will be paid in cash, and USD 60 mln will be paid in shares.
The transaction, which has been approved by both companies' boards of directors, is expected to close in Q1 2010, subject to the completion of customary due diligence and closing conditions.
After the transaction is complete, the combined company will operate bus networks in 18 of China's most affluent cities, including Beijing, Guangzhou and Shenzhen. The combined company will also have exclusive subway networks in eight key cities in China, including Beijing, Guangzhou, Shenzhen and Shanghai, as well as on Hong Kong's Airport Express line.
Keywords: Digital Media Group VisionChina television in-vehicle display VISN out-of-home display M&A
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