Nexstar Media Group, Inc. announced that it has entered into a definitive agreement to acquire LKQD Technologies, a leading independent video advertising infrastructure company.
The pending deal is said to be worth approximately $90 million.
The transaction is expected to be immediately accretive to Nexstar’s operating results and free cash flow, does not materially alter the Company’s leverage position and will be financed with cash generated from operations and funds provided by the Company’s revolving credit facility.
LKQD provides enterprise digital video advertising technology infrastructure for publishers and advertisers on all screens reaching approximately 115 million US online video viewers across desktop, mobile-web, mobile-app and connected TVs. Designed for flexibility, scalability and speed, LKQD’s Infrastructure as a Service (IaaS) technology provides end-to-end systems for ad serving, mediation, programmatic auctions and advanced reporting— allowing publishers to book, manage, optimize and track their operations in real-time from one dashboard.
“Our acquisition of LKQD is consistent with our long-term strategic and financial growth objectives for Nexstar Digital as we unify, expand and invest in our technology platform to optimize results for our clients, while developing new revenue opportunities,” says Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar. “By adhering to our disciplined acquisition and integration criteria, we are acquiring the leading, fast-growing, profitable, online video advertising business at an attractive, accretive valuation. Looking ahead, we continue to evaluate additional digital investments and select accretive transactions to drive the next phase of growth and success for Nexstar Digital.”