Extreme Reach to Acquire DGIT's TV Business for $485M in Cash

Extreme Reach announced today that it has agreed to acquire the TV business of Digital Generation, Inc.

, including its advertising distribution business unit, for $485 million in cash. The transaction, which is subject to approval by DGIT's shareholders, is expected to be accomplished in two contemporaneous steps: DGIT will distribute its online business to DGIT shareholders in the form of a new publicly-traded company, and Extreme Reach will acquire the remaining DGIT business pursuant to a cash merger. The acquisition is expected to be financed by a combination of existing cash, debt financing to be arranged by J.P. Morgan and SunTrust Robinson