More Broadcast M&A: DG FastChannel Buys Match Point Media, Expands into Infomercial Market

Posted by Joe Zaller
Sep 30 2010

Advertising and HD content delivery specialist DG FastChannel announced today that it will acquire privately-held Match Point Media LLC for $26 million in cash. The transaction will close on October 1, 2010.

Match Point is comprised of two wholly-owned companies, Treehouse Media Services, and Voltage Video.  It provides solutions and services to ad agencies and advertisers in the direct response advertising industry. The company had revenues of approximately $14m, and EBITDA of approximately $3m during the first nine months of 2010. DG FastChannel said that it expects to realize about $2m in cost synergies by the end of 2011. 

The company said that the acquisition of Match Point will enable DG FastChannel to add services and additional capacity for both short form and long form content preparation services, including: tagging and customization, voiceover, watermarking and closed captioning.

It appears that by buying Match Point, DG FastChannel wants to do for the $5Bn infomercial market what it did for the broadcast advertising market – i.e. bring it into the digital distribution era.  Company Chairman and CEO Scott Ginsburg said  “We expect that infomercials will switch from a predominantly Standard Definition (SD) format to the more complex HD format over the next several years, and we believe the Company is now positioned to lead this transition.” 

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You can read the full DG Fastchannel press release announcing the deal here.

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