MediaMind (formerly known as Eyeblaster) creates rich-media ad campaigns for brand advertisers.
It's based in New York but was founded in London and books 72% of
its business outside the U.S. MediaMind has 37 offices around the
world and places advertising on 8,200 publishers' sites in 64
countries. The idea is to create great rich-media ads once and
deliver globally to all types of devices.
The deal valued MediaMind at $22 a share, a $6 premium over
MediaMind's closing price Wednesday of $16 a share. The deal
includes $100 million in cash MediaMind has on its balance sheet.
It raised $57.5 million in an IPO last spring.
All of MediaMind's staff will join DG, according to company CEO
Scott Ginsburg. Gal Trifon, MediaMind's president and CEO, will
become chief digital officer of DG.
Spending in online display advertising has been accelerating
after several years of slower growth. EMarketer expects online
display to grow about 20% to $31 billion in the U.S. in 2011 from
$26 billion in 2010.
"With this acquisition, we will build on MediaMind's global
operational footprint and world-class technology platform to expand
our reach beyond North America," DG President-CEO Neil Nguyen said
in a statement. "The combined companies will serve a global
customer base and enable DG to penetrate such markets as Latin
America, Asia and EMEA [Europe, Middle East and Africa]."