In Digitas Inc. Acquisition, AdMedia Partners Advises Medical Broadcasting Company7 February 2006
Digitas Inc. announced last week the closing of its acquisition of Medical Broadcasting Company, one of the largest healthcare interactive marketing agencies in the country. AdMedia Partners (http://www.AdMediaPartners.com), a New York investment bank specializing in mergers and acquisitions advisory services to the advertising and marketing, media, and related online and information services businesses, represented Medical Broadcasting in the acquisition.
«Over the last few years big pharma has been dramatically shifting ad dollars online,» said Seth Alpert, one of the investment bankers who led Medical Broadcasting's deal team. «Having spotted this trend early on, Medical Broadcasting has built a client base that includes 10 of the largest pharmaceutical companies in the world.»
The official release is as follows:
Digitas Inc. Completes Acquisition of Medical Broadcasting Company
Tuesday January 31, 9:02 am ET, Boston -- Digitas Inc. (NASDAQ: DTAS - News) today said that it has completed the acquisition of Medical Broadcasting Company (MBC), one of the largest healthcare interactive agencies in the country. The acquisition brings to Digitas Inc. a third agency offering digital professional services to pharmaceutical and healthcare marketers. MBC currently employs approximately 140 people and is led by its co-founders David Kramer and Linda Holliday.
"MBC complements our organic strategy to help pharmaceutical and healthcare clients grow their digital and direct relationships with patients," said David Kenny, chairman and chief executive officer, Digitas Inc. "What's more, MBC's depth and talent in helping clients grow their digital and indirect relationships with healthcare professionals offers a capability that we believe is central to success in healthcare relationship marketing. I am thrilled to welcome our new colleagues and our new clients to our family of digital pioneers."
David Kramer, chief executive officer, Medical Broadcasting Company said, "MBC as a part of Digitas Inc. holds tremendous potential, and Linda and I, along with our people and our clients, are truly excited."
Guidance
As a result of the closing of the acquisition, Digitas Inc. today also updated Q1 2006 and Full Year 2006 guidance estimates that had been offered on January 26, 2006. For the full year 2006, Digitas Inc. said that it anticipates fee revenue of $405 million-$427 million. The company also said it expects to achieve earnings per share calculated in accordance with generally accepted accounting principles of $0.46-$0.56 for the full year 2006. In addition, Digitas expects adjusted cash earnings(1) of $0.61-$0.71 per share for the full year 2006.
For the first quarter 2006, the company anticipates fee revenue of $95.5 million-$99.5 million, earnings per share calculated in accordance with generally accepted accounting principles of $0.12-$0.14, and adjusted cash earnings(1) of $0.15-$0.17 per share.
About Digitas Inc.
The companies of Digitas Inc. (NASDAQ: DTAS - News) help blue-chip global brands develop, engage and profit from their customers through digital, direct and indirect relationships. Driving accountable and measurable relationship engines, the agencies are known for the marriage of art (creativity and insight) and science (analytics, measurement and strategy) across digital and direct media. Founded in 1980, Digitas Inc. is headquartered in Boston. The Digitas agency has locations in Boston, Chicago, Detroit and New York. The Medical Broadcasting Company is located in Philadelphia. The Modem Media agency has locations in Atlanta, London, Norwalk, and San Francisco.
(1) The company's projected adjusted cash earnings calculation excludes from its GAAP earnings amortization of intangible assets, stock-based compensation, restructuring expenses (income), and extraordinary items, if any, and employs the company's actual tax provision. The company believes its adjusted cash earnings calculations are meaningful as they exclude any noncash charges which the company believes are not necessarily indicative of the performance of the company's underlying business. Management believes the presentation of earnings excluding these charges provides useful information to investors as measures of operating performance basic to the company's ongoing operations and comparable from period to period. The following table reconciles projected adjusted cash earnings per share to GAAP earnings per share:
3 Months
12 Months
Ended
Ended
3/31/06
12/31/06
----------------------------------------- ------------- -------------
Low
High Low
High
End
End
End
End
----------------------------------------- ------ ------ ------ ------
GAAP earnings
$0.12 $0.14 $0.46 $0.56
----------------------------------------- ------ ------ ------ ------
Amortization of intangible assets
0.01 0.01 0.04 0.04
Stock-based compensation
0.02 0.02 0.11 0.11
----------------------------------------- ------ ------ ------ ------
Total of adjustments
$0.03 $0.03 $0.15 $0.15
----------------------------------------- ------ ------ ------ ------
Adjusted cash earnings
$0.15 $0.17 $0.61 $0.71
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements by Messrs. Kenny and Kramer, statements under the caption "Guidance" regarding management's expectations with respect to future revenues, earnings per share and adjusted cash earnings per share and statements regarding the company's future business prospects. These and all other forward-looking statements in this press release are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected or implied in such forward-looking statements. Such factors include, without limitation, overall economic and business conditions, the demand for the company's services (including the willingness and ability of the company's clients to maintain or expand their spending), competitive factors in the company's markets, the company's ability to sublet its excess real estate in the anticipated time frame, and the company's ability to effectively manage its growth and client relationships, the company's timing and ability to successfully integrate MBC's operations (including migration of MBC to the company's systems and controls) and employees, the introduction of new services by competitors or the entry of new competitors into the markets for the company's and MBC's services, the failure by the company to retain key employees and clients of MBC, failure to further develop and successfully market MBC's service offerings, failure to achieve anticipated revenues and earnings, costs related to the acquisition, among other factors. A further list and description of some of the risks and uncertainties potentially impacting the company's business and future performance can be found in the company's filings with the Securities Exchange Commission. Guidance offered by Digitas senior management today represents a point-in-time estimate made early in the first quarter and is based upon numerous assumptions that while believed to be reasonable may not prove to be accurate. The company expressly disclaims any current intention or obligation to update this forecast or any other forward-looking statement contained in this press release.
Contact:
Digitas Inc.
Investors
Maggie Morris, 617-369-8577
maggiemorris @ digitasinc.com
or
News Media
John Stevens, 617-867-1451
jstevens @ digitasinc.com
Source: Digitas Inc.
About AdMedia Partners
AdMedia Partners is a leading boutique investment bank that provides middle market mergers and acquisitions advisory services to advertising and marketing services, media and publishing, and related internet businesses. Founded in 1990 and located in New York City, the firm has completed over 100 transactions since 1999.
Selected transactions completed by AdMedia Partners in the last seven months include:
* Representing Medical Broadcasting Company, one of the largest independent interactive healthcare agencies, in its acquisition by Digitas Inc.
* Representing Bridge Worldwide, an interactive relationship marketing agency, in its acquisition by Wunderman, a unit of WPP Group.
* Representing 360i, a leading provider of search engine marketing services and technology, in its acquisition by Innovation Interactive.
* Representing Dynamic Logic, the leading independent marketing research company, in its acquisition by Millward Brown, a unit of WPP Group.
* Representing Creative Domain in its merger with Trailer Park to form one of the largest providers of diverse entertainment marketing services in Hollywood. The transaction was backed by a financial commitment from Lake Capital.
* Representing Dittus Communications, a Washington, DC based public affairs firm with legislative and regulatory expertise, in its acquisition by Financial Dynamics.
* Representing Federalist Group, a Washington, DC based government relations firm, in its acquisition by Ogilvy Public Relations Worldwide, a unit of WPP Group.
* Representing Grupo Editorial Expansión, Mexico's second largest magazine publisher, in its acquisition by Time Inc., a subsidiary of Time Warner.
* Representing Gruner+Jahr USA in its sale of Inc. magazine and Fast Company magazines to Mansueto Ventures LLC.
* Representing Taylor Rafferty, an independent global investor relations and financial communications advisor, in its sale to Xinhua Finance, China's premier financial services and media company.
* Representing Interweave Press in its acquisition by Aspire Media, a newly formed magazine entity backed by private equity firms Frontenac Company and Catalyst Investors LP.
For more information, contact:
Seth Alpert
Managing Director, AdMedia Partners
Email: salpert @ admediapartners.com
Greg Smith
Managing Director, AdMedia Partners
Email: gsmith @ admediapartners.com
AdMedia Partners
444 Madison Ave., 19th Floor
New York, NY 10022
Source: prweb
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Computer Hardware Articles
|
