Mood Media acquires media and tech firms

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ANF35.62-0.20

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.

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