More Broadcast Vendor M&A: DG Fastchannel Acquires Canadian Ad Firm MIJO, Second M&A Deal in Six Months

Posted by Joe Zaller
Apr 05 2011

DG Fastchannel announced that it has acquired MIJO, a provider of broadcast and digital media services to the Canadian advertising, entertainment and broadcast industries, for $39.5m in cash.

This appears to be a good exit for 32-year old MIJO, which provides US and multinational brands with a platform of bilingual and integrated media services.  MIJO had 2010 revenue of C$17.4m ($18m USD) and EBITDA of approximately C$3m, meaning that it achieved a valuation of 2.2x revenue and 5.8x EBITDA.

DG says it expects to achieve approximately $3.5m in cost synergies during the initial 12 month period following close.

MIJO co-founders Joel Reitman and Michael Goldberg are expected to remain with the company together with the core group of 110 employees, in order to assure operating continuity for Canadian clients.

This is the second M&A deal for DG FastChannel in the last six months.  Last September, it acquired Match Point Media LLC, a provider of services to the infomercial industry, for $26 million in cash.

It is likely that DG will continue to be acquisitive.  Last month the DG announced that it had appointed a new board member with “extensive experience in M&A” to assist the company with global expansion and operational improvement.

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Related Content:

You can read the DG press release about the acquisition of MIJO here.

DG FastChannel Buys Match Point Media, Expands into Infomercial Market

DG Appoints new board member to focus on M&A

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