DG Ends Strategic Review Process, No Deal Reached After Engaging 45 Potential Partners

Posted by Joe Zaller
Feb 19 2013

Advertising and content delivery specialist DG announced  that a “special committee” of the company’s board of directors has completed its review of strategic alternatives for the company.

DG says that following the six months review, the committee is “not recommending any transaction or other strategic alternative” be taken by the company.

Since being formed in August 2012, the “special committee” has explored numerous strategic alternatives available to the DG, including a sale of all or parts of the business, a spin-off and split-off of parts of the business, capital structure alternatives, and potential merger combinations. As part of its active review, the committee and its financial advisor, Goldman Sachs, engaged with over 45 potential financial and strategic partners (including competitors) to determine their levels of interest in a strategic transaction involving the Company. None of the parties contacted presented a definitive transaction.

DG says that following this process, the Special Committee has advised the company’s board of directors that “its review of strategic alternatives has concluded,” and that “substantial benefit was derived from the strategic alternatives process and [the committee] will advise the board on potential actions to enhance the value of our business for our shareholders.”

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Related Content:

Press Release: Digital Generation Announces Conclusion of Special Committee Review of Strategic Alternatives

DG Reports Third Quarter 2012 Results (includes statement about strategic review process)

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