iMedia Announces Accretive Acquisition of Synacor’s Portal & Advertising Business Segment
August 03 2021 - 6:00AM
iMedia Brands, Inc. (“iMedia” or the “Company”) (Nasdaq: IMBI)
announced that on July 30, 2021, the Company closed on the
acquisition of Synacor’s Portal and Advertising business segment.
Financial terms were not disclosed.
This acquisition is another example of iMedia’s
strategy to leverage its interactive video expertise and national
television promotional power, as well as its merchandising,
customer solutions and fulfillment capabilities, to build unique
media commerce services that the Company believes will accelerate
its timeline to become the leading single-source partner to
advertisers seeking to use interactive video to drive growth in the
online and OTT ecosystems. In 2019, iMedia acquired Float Left, a
leader in building and managing OTT applications and services for
media companies across all major OTT and CTV devices, including
Roku, Amazon Firestick, Apple TV and Samsung Smart TVs.
Synacor Portal and Advertising, which iMedia has
renamed to Media Commerce Services (MCS), creates and manages
end-to-end, white-label digital home-page platforms for domestic
multichannel video programming distributors (MVPDs) and internet
service providers (ISPs). MCS monetizes these platforms with
advertising and shares the advertising revenue with the respective
publisher. MCS also offers various advertising solutions to
additional online publishers, which includes MCS’s proprietary
monetization platform that unifies supply-side-platforms (SSPs) and
demand-side platforms (DSPs) and manages online publishers’
advertising sales operations.
iMedia expects this transaction to be accretive
and expects MCS to generate at least $40 million in profitable
revenue over the next twelve months. iMedia will be focused on
competing for share in both the emerging $9+ billion OTT
advertising marketplace, as well as the $200+ billion online
advertising marketplace, against other digital services companies
like Squarespace, Shopify and GoDaddy.
Commenting on this acquisition, Tim Peterman,
CEO of iMedia, said: “The management team we are acquiring is
strong and their advertising technology services are compelling. We
know their MVPD and ISP customers well and are excited about the
growth possibilities of empowering this team to leverage iMedia’s
assets to create differentiated service offerings. I want to thank
Synacor’s CEO, Himesh Bhise, for his partnership in completing this
transaction and look forward to continued product partnerships with
Synacor in the future.”
“iMedia will be a good fit for our talented
Portal and Advertising team, and the combination will be beneficial
for our MVPD, ISP and Publisher customers,” said Synacor CEO Himesh
Bhise. “Synacor is now a pure-play, cloud-oriented software
company, even more focused on growing and investing in our
high-performance Cloud ID Identity Management and Zimbra
Collaboration platforms.”
Lake Street Capital Markets, LLC served as
financial advisor to the Company for the transaction.
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading
interactive media company that owns a growing portfolio of
lifestyle television networks, consumer brands, online marketplaces
and media commerce services that together position the Company as a
leading single-source partner to advertisers and consumer brands
seeking to entertain and transact with customers using interactive
video.
About Synacor
Synacor, Inc. is a cloud-based software and
services company serving global video, internet and communications
providers, device manufacturers, governments and enterprises.
Synacor’s mission is to enable its customers to better engage with
their consumers. Its customers use Synacor’s technology platforms
and services to scale their businesses and extend their subscriber
relationships. Synacor has built its brand on email and
collaboration platforms and cloud-based identity management, and
also managed portals and advertising solutions. For more
information, visit www.synacor.com.
About Lake Street Capital
Lake Street Capital Markets is a
research-powered boutique investment bank focused on high-growth
industries including technology, consumer, healthcare and
clean-tech to serve institutional and issuer clients raise. Since
founding our firm in 2012, we have completed over 200 investment
banking transactions and helped raise more than $9 billion of
growth capital for our clients.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This document may contain certain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements contained
herein that are not statements of historical fact, including
statements regarding the expected revenue and profitability
performance of the Company’s Media Commerce Services business are
forward-looking. The Company often use words such as anticipates,
believes, estimates, expects, intends, seeks, predicts, hopes,
should, plans, will and similar expressions to identify
forward-looking statements. These statements are based on
management's current expectations and accordingly are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained herein due to various
important factors, including (but not limited to): variability in
consumer preferences, shopping behaviors, spending and debt levels;
the general economic and credit environment, including COVID-19;
interest rates; seasonal variations in consumer purchasing
activities; the ability to achieve the most effective product
category mixes to maximize sales and margin objectives; competitive
pressures on sales and sales promotions; pricing and gross sales
margins; the level of cable and satellite distribution for the
Company’s programming and the associated fees or estimated cost
savings from contract renegotiations; the Company’s ability to
establish and maintain acceptable commercial terms with third-party
vendors and other third parties with whom the Company has
contractual relationships, and to successfully manage key vendor
and shipping relationships and develop key partnerships and
proprietary and exclusive brands; the ability to manage operating
expenses successfully and the Company’s working capital levels; the
ability to remain compliant with the Company’s credit facilities
covenants; customer acceptance of the Company’s branding strategy
and its repositioning as a video commerce Company; the ability to
respond to changes in consumer shopping patterns and preferences,
and changes in technology and consumer viewing patterns; changes to
the Company’s management and information systems infrastructure;
challenges to the Company’s data and information security; changes
in governmental or regulatory requirements; including without
limitation, regulations of the Federal Communications Commission
and Federal Trade Commission, and adverse outcomes from regulatory
proceedings; litigation or governmental proceedings affecting the
Company’s operations; significant events (including disasters,
weather events or events attracting significant television
coverage) that either cause an interruption of television coverage
or that divert viewership from its programming; disruptions in the
Company’s distribution of its network broadcast to customers; the
Company’s ability to protect its intellectual property rights; our
ability to obtain and retain key executives and employees; the
Company’s ability to attract new customers and retain existing
customers; changes in shipping costs; expenses related to the
actions of activist or hostile shareholders; the Company’s ability
to offer new or innovative products and customer acceptance of the
same; changes in customer viewing habits of television programming;
and the risks identified under Item 1A(Risk Factors) in the
Company’s most recently filed Form 10-K and any additional risk
factors identified in its periodic reports since the date of such
Form 10-K. More detailed information about those factors is set
forth in the Company’s filings with the Securities and Exchange
Commission, including its annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K. Investors
are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this announcement.
the Company’s is under no obligation (and expressly disclaim any
such obligation) to update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
Contacts:
Media:press@imediabrands.com(800) 938-9707
Investors:Gateway Investor
RelationsCody SlachIMBI@gatewayir.com(949) 574-3860
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