Muzak maker Mood Media is to buy DMX, a US marketing firm that specialises in using music, video and even scent to boost brand loyalty.
Mood Media is paying $53.8m for DMX, although it also taking on the acquired company's debt, which bangs the buying price up to $86.1m.
To fund the acquisition it has entered into a private share placing worth £73.5m, selling 31,800,000 shares at 231p per share, 9p more than Friday's closing price.
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There will be some money left over from the fund raising which will be used for general corporate purposes.
Mood Media has had a storming last three months with the shares rising 40%, so the share placing is well timed.
DMX is a "multi sensory" branding operation which uses music, video and scent to give customers "lasting connections" to products that "encourage loyalty.
In the 12 months ended December 31st 2011, DMX recorded revenues of $84.6m, earnings before interest tax depreciation and amortisation of $16.5m and profit before taxation of $5.6m.
News of the acquisition has seen Mood's shares reach just short of the placing price; at 09:34 the stock was at 230p per share, a rise of 7.73%.
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