Mood Media acquires media and tech firms

Marketing firm Mood Media has acquired Technomedia Solutions and its sister company, GoConvergence, which provide media and technology innovations for multiple industries.

The companies have been bought for $23m in cash, along with contingent consideration payable in 2014, which is based on the profitable growth of the operations.

Technomedia's customers include Abercrombie & Fitch, Hard Rock Caf International, Cirque du Soleil, and Wanda Group.

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In 2012, Technomedia is expected to generate annual revenues of $43m and earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.7m.

"Technomedia's leadership in the entertainment, education and consumer experience categories worldwide will not only be a core focus of our collective growth and development plan, they are a great fit with our assets and strategy of transforming the point-of-sale environment using cutting-edge media and technology solutions," stated Lorne Abony, Chairman and Chief Executive Officer of Mood Media.

"We see substantial opportunity to leverage the strengths of our combined businesses to build a truly first class consumer-experience powerhouse. The transaction will be immediately accretive to Mood Media's shareholders while accelerating the growth profile and competitive positioning of the combined businesses."

The share price rose 4.15% to 113p by 10:35.

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