VisionChina Media acquires Digital Media Group

VisionChina Media, Inc., an operator of out-of-home advertising network, has acquired Digital Media Group Company Limited (DMG), an operator of digital media networks inside subway systems. Both the companies are based in China.

Announcement (October 15, 2009):

VisionChina has agreed to acquire DMG for a consideration of $160 million.

The consideration of $160 million consists in cash and shares payable by VisionChina to eligible shareholders of DMG in three installments over two years including the first installment of $100 million payable at the closing of the transaction. Two subsequent installments of $30 million each will be paid on the first and second anniversaries, respectively, of the closing of the transaction. Of the initial $100 million, $40 million will be paid in cash and $60 million will be paid in shares.

Earlier, DMG had secured venture funding from Gobi Partners and Oak Investment Partners.

The transaction is expected to close in the first quarter of 2010.

Simpson Thacher & Bartlett LLP and Orrick, Herrington & Sutcliffe LLP are acting as legal advisors to VisionChina and DMG, respectively.

Deal Value (US$ Million) 160
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2010-01-06

Deal Participants

Target (Company)   Digital Media Group Company Limited
Acquirer (Company) VisionChina Media, Inc.
Vendor (Company)   Undisclosed Vendors

Deal Rationale

The transaction will enable VisionChina to further strengthen its business.

Related terms: acquisition, advertising, business, china, investment, legal, media