Mood Media Corporation Announces Acquisition of DMX

Posted: 19th March 2012 10:02

Mood Media Corporation announced today that it has signed an agreement to acquire DMX Holdings, Inc. ("DMX") for US$86.1 million in cash including net debt repaid on closing, subject to certain adjustments for working capital. The equity value of the transaction will be approximately US$53.8 million.

In order to satisfy the consideration payable in connection with the DMX acquisition, Mood Media has today entered into placing agreements (the "Placing Agreements") in Canada and the UK to complete a private placement of 31,800,000 common shares, to be issued at 231 pence per common share (C$3.60 per common share) raising £73.5 million (C$114.5 million) before expenses. The additional net proceeds of the private placement will be used for general corporate purposes.

Both the DMX acquisition and the private placement are subject to the satisfaction of various regulatory and other conditions, including admission of the common shares to be issued under the private placement to trading on AIM ("Admission"), the Placing Agreements becoming unconditional (save as to Admission) and Admission. The Placing Agreements contain rights under which they can be terminated for a breach of warranty up to Admission and are also subject to Admission having occurred by 8.00 a.m. on March 20, 2012 (or such later date not being later than March 27, 2012 as may be agreed between the parties). Mood Media anticipates the closing of both the DMX acquisition and the private placement will occur in March 2012. 


DMX is a US provider of multi-sensory branding services, delivering services to over 100,000 locations.   DMX uses music, video and digital signage, messaging, scent, and audio/visual systems to personify and enhance brands to create lasting connections that encourage customer loyalty. In the 12 months ended 31 December 2011, DMX recorded revenues of US$84.6 million, EBITDA of US$16.5 million and profit before taxation of US$5.6 million.

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