Mood Media Corporation announced today that it has completed its acquisition of DMX Holdings, Inc., a leading U.S. provider of multi-sensory branding services, for USD 86.1 million in cash, including net debt repaid at closing. The transaction’s equity value stands at approximately USD 53.8 million. This acquisition further strengthens Mood Media’s position as a global leader in in-store media solutions, enhancing its service offerings and expanding its footprint in the North American market.
The acquisition will enable Mood Media to leverage DMX’s extensive experience in delivering custom music, video, digital signage, messaging, scent, and audio/visual systems to more than 100,000 client locations. In the fiscal year ending December 31, 2011, DMX reported revenues of USD 84.6 million, EBITDA of USD 16.5 million, and profit before taxation of USD 5.6 million.
Lorne Abony, CEO and Chairman of Mood Media, commented, “The acquisition of DMX represents a significant step forward in our strategy to expand our multi-sensory branding capabilities. This combination allows us to further enhance our ability to deliver a broad range of integrated media solutions to our clients, creating more meaningful and lasting connections with their customers.”
Private Placement and Financing
To fund the acquisition, Mood Media completed a private placement of 31,800,000 common shares at a price of 231 pence per share (C$3.60 per common share), raising approximately £73.5 million (C$114.5 million) before expenses. The proceeds were utilized in part to meet the cash consideration for the DMX acquisition, with the remaining funds earmarked for general corporate purposes.
Strategic Benefits and Market Impact
The acquisition of DMX aligns with Mood Media’s broader strategy to offer comprehensive in-store media solutions that enhance brand experiences and promote customer loyalty. With the addition of DMX’s multi-sensory branding expertise, Mood Media is positioned to serve a broader spectrum of industries, including retail, hospitality, and quick-service dining, creating immersive environments that elevate consumer engagement.
DMX’s robust service offerings, which include custom audio programming, digital signage, and scent marketing, complement Mood Media’s existing capabilities and will enable the combined entity to deliver tailored, scalable solutions across its global client base, which includes over 470,000 commercial locations in more than 40 countries.
Stock Exchange Matters
The common shares issued in the private placement have received conditional approval for listing on the Toronto Stock Exchange, subject to the satisfaction of customary conditions.
About Mood Media Corporation
Mood Media Corporation is a leading in-store media specialist that uses a mix of music, visual, and scent media to help its clients communicate with consumers, aiming to drive incremental sales at the point-of-purchase. Named Canada’s fastest-growing company by PROFIT Magazine, Mood Media operates through its two main divisions—In-Store Media and Retail Point-of-Purchase—and works with over 850 U.S. and international brands.
Through its subsidiaries, including Mood Media, Muzak, and Mood Entertainment, Mood Media’s products and services reach 100 million people every day, providing solutions for a diverse range of sectors such as retail, hospitality, and foodservice.
For more information, please visit www.moodmedia.com.
About DMX Holdings, Inc.
DMX Holdings, Inc. is a U.S.-based provider of multi-sensory branding services, offering custom music programming, visual media, scent marketing, and audio/visual systems to enhance the customer experience. With a focus on creating branded environments that inspire customer loyalty, DMX’s services reach over 100,000 locations across various sectors, including retail, hospitality, and dining.
The acquisition of DMX solidifies Mood Media’s position as a global leader in creating personalized, immersive in-store experiences, setting the stage for continued growth and innovation in the sensory branding industry.
