DG Fastchannel (DGIT) Spikes on Rumor of Potential Sale
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DG Fastchannel (Nasdaq: DGIT) shares saw a mid-afternoon surge today following reports that the company was exploring a sale.
This isn't the first time DG has attempted a sale, but two prior efforts ended up with no deal. Once, bankers balked at the price, and DG halted the process the second time. Bloomberg notes that there can be no assurance that a deal will be reached with current talks.
With a market cap of about $755 million, DG may look for up to $1 billion from bidders. The number would be about 10x EBITDA, according to Bloomberg.
DG is working with Goldman Sachs to hash out details of the deal and find buyers.
Neither Goldman nor DG commented on the talks.
Just this morning, DG entered an agreement to acquire MediaMind Technologies (Nasdaq: MDMD) for $22 per share, or $517 million total.
Shares of DG spiked on the report, gaining as much as 11.3 percent, before settling back down.
This isn't the first time DG has attempted a sale, but two prior efforts ended up with no deal. Once, bankers balked at the price, and DG halted the process the second time. Bloomberg notes that there can be no assurance that a deal will be reached with current talks.
With a market cap of about $755 million, DG may look for up to $1 billion from bidders. The number would be about 10x EBITDA, according to Bloomberg.
DG is working with Goldman Sachs to hash out details of the deal and find buyers.
Neither Goldman nor DG commented on the talks.
Just this morning, DG entered an agreement to acquire MediaMind Technologies (Nasdaq: MDMD) for $22 per share, or $517 million total.
Shares of DG spiked on the report, gaining as much as 11.3 percent, before settling back down.
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