LONDON (ShareCast) - Marketing firm Mood Media has acquired Technomedia Solutions and its sister company, GoConvergence, which provide media and technology innovations for multiple industries.
The companies have been bought for $23m in cash, along with contingent consideration payable in 2014, which is based on the profitable growth of the operations.
Technomedia's customers include Abercrombie & Fitch (NYSE: ANF - news) , Hard Rock Café International, Cirque du Soleil, and Wanda Group.
In 2012, Technomedia is expected to generate annual revenues of $43m and earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.7m.
"Technomedia's leadership in the entertainment, education and consumer experience categories worldwide will not only be a core focus of our collective growth and development plan, they are a great fit with our assets and strategy of transforming the point-of-sale environment using cutting-edge media and technology solutions," stated Lorne Abony, Chairman and Chief Executive Officer of Mood Media.
"We see substantial opportunity to leverage the strengths of our combined businesses to build a truly first class consumer-experience powerhouse. The transaction will be immediately accretive to Mood Media's shareholders while accelerating the growth profile and competitive positioning of the combined businesses."
The share price rose 4.15% to 113p by 10:35.