Millennial Media To Buy Nexage For $107.5 Mln In Cash-stock Deal; Backs Q3 View

(RTTNews) - Millennial Media (MM) has agreed to acquire Nexage for about $107.5 million in cash and stock. Boston-based privately-held Nexage is a provider of Real-Time-Bidding or RTB technology that helps to automate the buying and selling of mobile advertising.

As part of the agreement, Millennial Media would pay nearly $22.5 million cash and around $85 million in stock. Therefore, Nexage shareholders would receive about 37 million newly issued shares of Millennial Media based on a price of $2.21 per share of Millennial Media common stock, which is the volume weighted average trading price per share during the fifteen trading days immediately up to and including September 16, 2014, corresponding to approximately 26% ownership for Nexage shareholders on a pro forma combined basis, based on issued and outstanding shares.

LUMA Securities acted as the financial advisor to Millennial Media and GCA Savvian acted as the financial advisor to Nexage.

In addition, the firm said it still expects total revenue to be in the range of $65 million to $70 million and adjusted EBITDA to be a loss of between $(7) million and $(8) million for the third quarter of 2014.