MINNEAPOLIS, August 03, 2021 (GLOBE NEWSWIRE) – iMedia Brands, Inc. (“iMedia” or the “Company”) (Nasdaq: IMBI) announced that on July 30, 2021, the Company completed the acquisition of the portal from Synacor and the Advertising business segment. Financial terms were not disclosed.
This acquisition is another example of iMedia’s strategy to leverage its interactive video expertise and promotional power on national television, along with its merchandising, customer solutions and fulfillment capabilities, to create unique media commerce services that the Company believes will accelerate its timeline to become the leading single partner for advertisers looking to use interactive video to drive the growth of online and OTT ecosystems. In 2019, iMedia acquired Float Left, a leader in building and managing OTT apps and services for media companies on all major OTT and CTV devices, including Roku, Amazon Firestick, Apple TV, and Samsung Smart. TV.
Synacor Portal and Advertising, which iMedia renamed to Media Commerce Services (MCS), creates and manages end-to-end white-label digital homepage platforms for national multi-channel video program (MVPD) distributors and vendors Internet Service (ISP). MCS monetizes these platforms with advertising and shares the advertising revenue with the respective publisher. MCS also offers various advertising solutions to other online publishers, including MCS’s proprietary monetization platform which unifies supply-side platforms (SSP) and demand-side platforms (DSP) and manages the operations of online publisher advertising sales.
iMedia expects this transaction to be profitable and expects MCS to generate at least $ 40 million in profitable revenue over the next twelve months. iMedia will focus on competing for shares of the emerging OTT advertising market of over $ 9 billion, as well as the online advertising market of over $ 200 billion, against other digital service companies like Squarespace, Shopify, and GoDaddy.
Commenting on the acquisition, Tim Peterman, CEO of iMedia, said, “The management team that we acquire is strong and their ad technology services are compelling. We know their MVPD and ISP clients well and are excited about the growth opportunities to allow this team to leverage iMedia’s assets to create differentiated service offerings. I would like to thank the CEO of Synacor, Himesh Bhise, for his partnership in completing this transaction and look forward to continuing product partnerships with Synacor in the future.
“IMedia will be a great fit for our talented portal and advertising team, and the combination will benefit our MVPD, ISP and Publisher customers,” said Himesh Bhise, CEO of Synacor. “Synacor is now a pure cloud-based 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 acted as financial advisor to the Company for the transaction.
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading interactive media company with a growing portfolio of lifestyle television networks, consumer brands, online marketplaces and media commerce services that, together, position the Company as a premier single partner for advertisers and mainstream brands seeking to entertain and engage with customers using interactive video.
Synacor, Inc. is a cloud-based software and services company serving global video, internet and communications providers, device manufacturers, governments, and businesses. Synacor’s mission is to enable its customers to better interact with their consumers. Its clients use Synacor’s technology platforms and services to grow their businesses and expand their relationships with subscribers. Synacor has built its brand on messaging and collaboration platforms and cloud-based identity management, as well as managed portals and advertising solutions. For more information, visit www.synacor.com.
About Lake Street Capital
Lake Street Capital Markets is an investment bank specializing in research focused on high growth sectors, including technology, consumer, healthcare and cleantech, to serve institutional and issuer clients. Since our firm was founded in 2012, we’ve completed over 200 investment banking transactions and helped raise over $ 9 billion in growth capital for our clients.
Safe Harbor Declaration under the Private Titles Litigation Reform Act 1995
This document may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not statements of historical fact, including statements regarding income and profitability expected from the company’s Media Commerce division. Service activities are focused on the future. The Company often uses words such as anticipate, believe, estimate, expect, intend, seek, predict, hope, should, foresee, will and similar expressions to identify forward-looking statements. These statements are based on management’s current expectations and are therefore subject to uncertainty and changes in circumstances. Actual results may differ materially from expectations contained herein due to a variety of important factors, including (but not limited to): variability in consumer preferences, purchasing behaviors, spending and levels of indebtedness; the general economic and credit environment, including COVID-19; interest rate; seasonal variations in consumer purchasing activities; the ability to achieve the most effective combinations of product categories to maximize sales and margin goals; competitive pressures on sales and sales promotions; prices and gross sales margins; the level of cable and satellite distribution of the Corporation’s programming and the associated fees or estimated cost savings resulting from contract renegotiations; the Company’s ability to establish and maintain acceptable business terms with third party suppliers and other third parties with which the Company has contractual relationships, and to successfully manage key supplier and shipment relationships and develop key partnerships and proprietary and exclusive brands; the ability to successfully manage the operating expenses and working capital levels of the Company; the ability to remain in compliance with the covenants of the Company’s credit facilities; customer acceptance of the company’s branding strategy and its repositioning as a video commerce company; the ability to respond to changes in consumer purchasing habits and preferences, and to changes in technology and consumer viewing habits; changes to the Company’s management and information systems infrastructure; the challenges to the Company’s data and information security; changes in government or regulatory requirements; including, without limitation, Federal Communications Commission and Federal Trade Commission regulations, and adverse results of regulatory proceedings; government litigation or proceedings affecting the operations of the Company; significant events (including disasters, weather events or events attracting significant television coverage) which either cause television coverage to be disrupted or which distract audiences from its programming; disruptions in the distribution by the Company of its distribution network to customers; the Company’s ability to protect its intellectual property rights; our ability to recruit and retain executives and key 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 thereof; changes in customer viewing habits for television programming; and the risks identified in Item 1A (Risk Factors) of the last Form 10-K filed by the Company and any other risk factor identified in its periodic reports since the date of this Form 10-K. More detailed information on these factors is set out 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 has no obligation (and expressly disclaims any such obligation) to update or modify its forward-looking statements, whether as a result of new information, future events or otherwise.
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