VisionChina Media to buy Digital Media Group

posted: 42 DAYS 13 HOURS AGO

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SEATTLE -VisionChina Media Inc., which operates digital advertising screens on mass transportation systems in China, said Thursday it will buy subway advertising company Digital Media Group for $160 million in cash and stock.

Beijing-based VisionChina Media said that when the deal closes, it will have exclusive subway advertising networks in eight major cities in China, including Beijing, Shanghai, Guangzhou and Shenzhen, plus bus ad networks in 18 of the country's richest cities.

After the acquisition, the VisionChina Media said it will deliver real-time television programming to commuters. Buying Shanghai-based DMG will push VisionChina Media's share of digital mobile television screens over 50 percent, the company said.

Under the terms of the deal, VisionChina Media will pay $40 million in cash and $60 million in stock to DMG shareholders at the closing of the transaction, which is expected in the first quarter of 2010. It will pay installments of $30 million each on the first and second anniversaries of the deal.

Both boards have approved the acquisition.

VisionChina's shares jumped 83 cents, or 9.6 percent, to $9.50 in afternoon Nasdaq trading Thursday.

2009-10-15 13:50:31