Yangaroo Completes Acquisition of Digital Media Services
THE FIRST ACQUISITION OF YANGAROO TO ADD TO ITS NORTH AMERICAN FOOTPRINT
Toronto, Ontario – (Newsfile Corp. – May 21, 2021) – YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) (“Yangaroo“,”Company“), a leading software in multimedia asset distribution and workflow solutions, today announced the acquisition of Digital Media Services Inc. (“DMS“), a New York-based advertising broadcast, TV / OTT / CTV and video content management company.
The acquisition brings together two recognized industry organizations. Collaborative cloud-based platforms, digital broadcast and broadcast networks, video and audio production services, and local market expertise provide existing and new customers with a more robust and greater solution offering. Service level management and delivery of creative services to traditional broadcast and digital destinations in North America and internationally.
“DMS, our first strategic acquisition for Yangaroo, brings together a complementary customer base, creates a stronger presence in the US market and offers the ability to further drive Yangaroo revenue growth,” said Grant Schuetrumpf, CEO of Yangaroo. “This now provides us with a compelling opportunity to significantly expand our service offering for advertisers who deliver creative and promotional content to destinations through linear broadcasters, OTT and CTV, as well as radio broadcast and broadcast networks in continued.
“We have a strong belief in future prospects and opportunities in combining Yangaroo and DMS into a single solution offering,” said Jeff Louisot, former CEO and President of DMS and newly appointed President, Digital Media Services of Yangaroo. “We are delighted to join Yangaroo and continue this growth strategy across North America.”
“The service needs of our combined customers are our top priority, so it’s business as usual as we keep all of DMS’s talented and knowledgeable employees,” concludes Grant Schuetrumpf. “We will do our best to ensure that all customer expectations are met while carefully integrating our working practices, technologies, platforms and services throughout the transition.”
Yangaroo to Acquire DMS Business for Total Consideration of US $ 2.5 Million Paid at Closing (“Basic consideration”) with an additional $ 3.0 million payable over three years and subject to the DMS business meeting certain revenue targets based on fiscal 2019 (“Additional contribution”). The total consideration of 5.5 million USD includes the base consideration and the additional consideration, if applicable. DMS generated approximately $ 4.0 million in revenue in 2020. In addition, DMS revenue totaled $ 6.4 million and $ 6.3 million in 2018 and 2019, respectively, before the onset of the COVID pandemic. -19.
Yangaroo will acquire certain assets and liabilities of the DMS entities, including all technology and intellectual property, customers and employees, and office leases.
The acquisition should generate significant synergies resulting from the integration of technological platforms and a reduction of certain overheads in the combined activities.
The acquisition and related transaction costs are to be financed through an engaged debt financing program underwritten by the National Bank of Canada (“NBC”) and Yangaroo’s existing cash position. The debt financing program consists of an acquisition term loan facility, a revolving line of credit and other current banking facilities. The set represents a total NBC commitment of C $ 5.5 million (“Ease of acquisition“) and facilitate Yangaroo’s acquisition of DMS, working capital requirements and contribute to future commercial and strategic banking.
“We are pleased to have partnered with NBC, and more specifically the NBC Technology and Innovation Group, in the acquisition of DMS,” said Dom Kizek, Chief Financial Officer of Yangaroo. “NBC’s ease of acquisition is a reflection of the work we have done over the past 24 months to strengthen Yangaroo’s board of directors and management team, improve our balance sheet and renew our strategic direction. on accretive growth thanks to opportunistic acquisitions and organic expansion. NBC is a fantastic partner on this acquisition, and we look forward to developing the banking relationship in the future. “
“National Bank’s Technology and Innovation Banking Group is delighted to partner with Yangaroo to support this strategic transaction. As one of the leading technology companies in Canada, Yangaroo provides innovative solutions for the entertainment industry and is entering its next phase of growth with this acquisition. Our group is proud to support companies like Yangaroo with our differentiated offer based on personalized advice and sector expertise ”, said Nik Rasskazovskiy, Group Director of the Technology and Innovation Bank at the National Bank.
Yangaroo will finance the base counterpart with the ease of acquisition and available liquidity. The top-up, if triggered by revenue targets, will be funded from the cash flows expected to be generated during the three-year top-up period.
Conference call and webcast information
Yangaroo will host a conference call and webcast to discuss the company’s acquisition of the DMS business at 10 a.m.ET on Friday, May 21, 2021. To access:
Webcast link: https://www.gowebcasting.com/11316
Canada / United States toll-free number: 1-800-319-4610
The conference call and webcast will be available to stream on the Investor Relations website at: https://yangaroo.com/investor-relations/.
Yangaroo is a leading software provider of workflow and multimedia asset distribution solutions for the advertising, music and awards industries. YANGAROO’s patented digital media delivery system is a leading secure enterprise cloud platform that provides authorization, delivery, and secure API integration for various workflow challenges in media distribution. ‘multimedia assets.
YANGAROO has offices in Toronto, New York and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the United States under OTC Pink: YOOIF.
DMS, through its offices in New York, New Jersey and Los Angeles, provides multimedia asset distribution and content management services to marketers, advertisers, media agencies, broadcasters, publishers and filmmakers, among others, throughout the life cycle of a medium. active. The services include the distribution of advertising and other post-production services.
About the National Bank of Canada
With $ 344 billion in assets as of January 31, 2021, National bank of Canada, together with its subsidiaries, forms one of the main integrated financial groups in Canada. It has more than 26,000 employees in knowledge-intensive positions and has been recognized many times as one of the best employers and for its commitment to diversity. Its securities are listed on the Toronto Stock Exchange. Follow the Bank’s activities on bnc.ca or via social networks such as Facebook, LinkedIn and Twitter.
This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects the current expectations of the company regarding future events, in particular with regard to the acquisition strategy of the company, the impact of the acquisition, the total expected consideration and the expected synergies. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the control of the Company, which could cause actual results and events to occur. differ materially from those disclosed or implied by such forward-looking information.
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