US holding group Ascent Media plans to sell the content distribution business of its digital services subsidiary AMG to local rival Encompass Digital Media for US$120m.
The deal comprises US$113m in cash and US$7m in debt, which will be financed by…
US holding group Ascent Media plans to sell the content distribution business of its digital services subsidiary AMG to local rival Encompass Digital Media for US$120m.
The deal comprises US$113m in cash and US$7m in debt, which will be financed by Macquarie Capital and Encompass’ existing lender and shareholder Tennenbaum Capital.
The announcement comes just weeks after Ascent unveiled plans to sell AMG’s creative and media services division to Deluxe Entertainment Services, a digital services provider headquartered in Hollywood, for a total US$68m in cash.
Both the Encompass and Deluxe transactions are still subject to shareholder and regulatory approval, but are expected to close in the first quarter of 2011 and by the end of 2010, respectively.
Encompass is being financially advised by Macquarie. Munger, Tolles & Olson is providing legal advice.
A Deluxe spokesperson told SatelliteFinance that it is being advised on transaction services by Ernst & Young, with Paul, Weiss, Rifkind, Wharton & Garrison, and Berwin Leighton Paisner all providing legal advice.
Ascent is being financially advised by Moelis & Co and legally advised by Baker Botts on both transactions.
Once the two deals are completed, only AMG’s systems integration business will be under the ownership of Ascent, which is seeking strategic alternatives for the unit.
Ascent declined to reveal further details about its plans for the rest of AMG.
