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Mood Media to buy DMX Holdings in $86.1 mln deal

Mood Media to buy DMX Holdings in $86.1 mln deal

Mood Media Corp. (TSE:MM), an in-store marketing firm, said Monday it has agreed to buy DMX Holdings in a US$86.1 million cash deal.

The deal, which is slated to close this month, includes DMX’s net debt. The equity value of the transaction is roughly US$53.8 million, Mood Media said.

Mood Media also said it has entered into a private placement financing arrangement in Canada and the U.K. to finance the deal.

It plans to issue 31.8 million shares priced at C$3.60 per share to raise C$114.5 million, before expenses. Additional proceeds from the financing will go toward general corporate purposes, it added.

DMX, which is U.S.-based, is a multi-sensory branding company that uses music, video as well as scent systems to enhance brands to create “lasting connections that encourage” consumer loyalty.

At the end of December 31, DMX had annual sales of $84.6 million. It recorded earnings before interest, tax, depreciation and amortization of $16.5 million, while profit before taxes was $5.6 million.

Mood Media works with more than 470,000 commercial locations across 40 countries throughout North America, Europe, Asia and Australia.

Its products and services reach 100 million people in a broad client base that includes over 850 U.S. and international brands in the retail, financial services, casual dining and hospitality sectors.

The company’s share price closed Friday at $3.30 each in Toronto.

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