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Nexstar buying LKQD Technologies
Posted on Thursday, 07 December 2017 14:51
Nasdaq-listed diversified media company Nexstar has signed on the dotted line to acquire LKQD Technologies, a provider of video advertising infrastructure services.
Under the terms of the transaction, the buyer will pay around USD 90.00 million in cash for the business.
The deal will also include an unspecified earn out component, which will be paid two years after completion, subject to LKQD achieving certain performance-related targets.
Nexstar expects its operating results and free cash flow to be positively affected by the acquisition, while its leverage position should not be materially altered.
The company will finance the deal using its existing revolving credit facility.
Nexstar chief executive Perry Sook said the acquisition is in line with the group’s long-term strategic and financial growth objectives and will enable it to better serve clients while looking into ways to grow revenue.
Gregory Raifman, president of the group’s digital subsidiary, added: “The acquisition of LKQD significantly strengthens and expands Nexstar Digital’s product offerings with flexible and scalable end-to-end technology infrastructure systems that enable cross-device ad delivery with multi-dimensional analytics and reporting.”
Completion is expected to take place later this year or early in the first quarter of 2018, subject to customary closing conditions and Hart-Scott-Rodino approval.
LKQD Technologies was founded in 2014 and offers infrastructure as a service technology which provides a range of services, including ad serving, data management and advanced reporting.
According to Zephyr, the M&A database published by Bureau van Dijk, Nexstar has already completed one other acquisition this year, having paid USD 4.70 billion for Virginia-headquartered Media General back in January.
Previous targets have included New Jersey-based online digital marketing platform operator Yashi and Louisiana-headquartered broadcaster Communications Corporation of America, which were acquired in February and January 2015 for USD 33.00 million and USD 270.00 million, respectively.
© Zephus Ltd