Brightcom Group Marks Entry into Digital Audio Advertising Segment
With the acquisition of the assets of a US-based digital audio company
Brightcom Group today announced that it has signed a Letter of Intent (LOI) to acquire all assets of a US-based digital audio company that owns and operates multiple assets. The Company is an integrated digital platform offering multiple scheduled radio stations, various digital brands and digital marketing services in numerous markets in the United States.
This acquisition is immediately EPS accretive by adding $45 million to Brightcom’s revenue and $15 million to its EBIDTA. Synergies between Brightcom’s current business and new assets will add to the numbers above.
The acquisition value of the assets, including its net cash, is set at $102.5 million, including $95 million in cash and $7.5 million in BCG stock.
This decision will mark the Brightcom Group’s significant entry into this rapidly growing segment of digital audio advertising. Digital audio advertising includes all advertising revenue generated from pre and in-stream audio advertisements that appear in music (music also contains various radio services) and podcast streaming services. This revenue would include free ad-supported versions of premium subscription services or ad-supported services.
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