Nexstar Broadcasting to Acquire Leading Digital Publishing Platform and Digital Agency in a Strategic Transaction
March 13 2014 - 7:04AM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) (“Nexstar”)
announced today that it has entered into a definitive agreement to
acquire the assets of Internet Broadcasting Systems, Inc. (“IB”), a
leading digital publishing platform and digital agency services
provider for $20.0 million in a transaction that is expected to be
accretive to 2014 results. The acquisition will be funded through
internal sources and is expected to close later this month.
A pioneer of innovative technology and services for the
broadcast media industry, IB transforms how publishers engage and
interact with their audiences through its suite of fully scalable
digital solutions including award-winning websites, an innovative
SaaS-based digital publishing platform, original and syndicated
content, and one of the largest digital advertising agencies that
provides full life-cycle advertising and sales operations
solutions. IB’s clients include leading media companies such as
Hearst Television and Post-Newsweek Stations, both of which have
recently renewed their agreements with IB.
The planned acquisition of IB substantially broadens Nexstar’s
digital media portfolio with technologies that are complementary to
the Company’s and IB’s clients’ existing digital businesses and
multi-screen strategies. IB will operate as a separate division in
Nexstar’s digital media portfolio.
Tom O’Brien, Nexstar Broadcasting Group Executive Vice
President/Digital Media and Chief Revenue Officer, commented, “IB’s
leading digital publishing platform adds new IP and digital
workflows to our digital platform offerings, allowing us to marry
best-of-breed digital media practices from our current operations
with those of IB to deliver more fully-integrated digital
management solutions to IB’s clients and our markets to generate
new revenue across multiple digital platforms.
“The IB acquisition also marks Nexstar’s entry into the
profitable and fast-growing digital agency business. IB currently
has a strong client roster and expertise in this business, and with
Nexstar currently owning and operating more than 50 web properties,
we will be in an ideal position to offer enhanced digital services
to our customers as well as more innovative multi-platform
marketing solutions for local and national advertisers on-air,
online and on mobile devices.”
The purchase price represents a mid-5x multiple of pro-forma
2014 EBITDA. In the first year following the closing of the
transaction, IB’s operations are expected to expand Nexstar’s
digital business portfolio to over $45 million in annual
revenues.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Broadcasting Group, Inc., added, “By adhering to our
disciplined criteria, we are acquiring a profitable digital
business at an attractive pro-forma EBITDA multiple. The purchase
multiple is consistent with that of Nexstar’s recent station
acquisitions and is below that of other recently announced industry
transactions.
“Consistent with our long-term strategic objective to identify
and execute accretive transactions that build our revenue, scale
and operating base, Nexstar intends to continue to focus on digital
investments that allow us to further expand the Company’s overall
digital media business portfolio, capitalize on emerging market
trends to maximize multi-platform audiences and revenue
opportunities.”
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media
company that leverages localism to bring new services and value to
consumers and advertisers through its traditional media, digital
and mobile media platforms. Nexstar owns, operates, programs or
provides sales and other services to 74 television stations and 13
related digital multicast signals reaching 44 markets or
approximately 12.1% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV and independent stations. Nexstar’s 43
community portal websites offer additional hyper-local content and
verticals for consumers and advertisers, allowing audiences to
choose where, when and how they access content while creating new
revenue opportunities.
Pro-forma for the completion of all announced transactions
Nexstar will own, operate, program or provides sales and other
services to 108 television stations and related digital multicast
signals reaching 56 markets or approximately 16.0% of all U.S.
television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
Nexstar Broadcasting Group, Inc.Thomas E. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph Jaffoni,
212-835-8500nxst@jcir.com
Nexstar Media (NASDAQ:NXST)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nexstar Media (NASDAQ:NXST)
Historical Stock Chart
From Apr 2023 to Apr 2024