DG acquires Mijo
The media services firm has been acquired by US-based DG for $39.5 million.
The media services scene in Canada saw a bit of a shakeup this week as Toronto-based Mijo announced that it has been acquired by Texas-based DG.
DG, also a provider of digital media services to the advertising, broadcast and entertainment industries, acquired Mijo for $39.5 million in cash.
The acquisition allows DG to get a foothold in the Canadian market via an established company, Michael Goldberg, co-founder, Mijo, tells MiC.
‘DG had wanted to get into Canada in a big way, and Mijo was looking for global reach, and it seemed that [the acquisition] was a good fit. We both have a strong commitment to technology, and when we integrate our technology together, it will be a positive result for the Canadian advertising industry.’
Mijo’s staff, and executive team, will be staying intact under its new ownership, Goldberg confirms.
As for changes clients might see, Goldberg says they will only be positive as DG’s technological infrastructure and tools are adopted by Mijo.
‘Clients will see initially no changes,’ he says. ‘Ultimately as we upgrade the technology, they’ll probably see things run more efficiently and material will be distributed at a quicker speed than in the past.’
DG’s resources, which include a dual-edge server footprint to distribute advertising, direct response and syndication content will be located at 50 to 60 Canadian television broadcast sites, as well as all of Canada’s radio stations, a release on the matter stated.
Mijo has been in business in Toronto for over 30 years and reported revenues of $17.4 million (CDN) in 2010, the release said. DG said it expects to recognize an estimated $3.5 million in cost synergies in the company’s first full year following the deal’s close.