Nexstar Media Group revealed on Thursday its intent to acquire mobile video platform LKQD for $90 million.
The all-cash transaction is accretive and subject to certain terms, including LKQD maintaining a $10 million minimum cash balance.
LKQD’s payment is also contingent upon its performance under Nexstar for the next two years. The deal is expected to close by the end of 2017 or in Q1 2018.
LKQD’s revenue growth, client base and video infrastructure made it a strategic fit for Nexstar Digital’s local digital marketing and content monetization tools, said Nexstar Digital’s president, Greg Raifman.
“We think LKQD will create new video opportunities which will allow Nexstar’s advertising clients to target their customers across both the television and digital video landscapes,” he said.
LKQD’s publisher-focused stack includes data management, an ad server, ad player and ad decisioning system that supports HTML5 creative. It claims to have a publisher footprint reaching about 115 million US online video viewers across desktop, mobile web, in-app and connected TV.
Raifman, formerly the president of Rubicon Project, joined Nexstar in March when the local broadcasting company merged its local digital advertising solutions and content monetization solutions under the wholly owned subsidiary Nexstar Digital.
Nexstar is still looking to acquire companies for Nexstar Digital following the LKQD buy.
“We continue to look at potential value-building acquisitions,” Raifman said. “LKQD met our disciplined acquisition criteria, as we are purchasing a leading, fast-growing, profitable business at an attractive, accretive valuation.”
Nexstar isn’t just focused on digital growth.
Nearly a year ago, Nexstar Broadcasting closed its $4.6 billion merger with Media General, which gave the combined Nexstar Media Group reach across 39% of US TV households through 171 local TV stations in 100 markets.
Nexstar Media Group has been vocal about the need for innovation in broadcast technology, including advancing the adoption of next-gen ATSC 3.0 technology through a consortium with Sinclair Broadcast Group and Univision.
This post was syndicated from Ad Exchanger.