Nexstar Media is buying LKQD Technologies, an independent video advertising infrastructure company, for about $90 million cash. The companies expect the deal to close in late 2017 or early 2018.
Nexstar will integrate LKQD into the Nexstar Digital portfolio. According to the companies, LKQD offers digital video advertising technology infrastructure for publishers and advertisers reaching approximately 115 million U.S. online video viewers across desktop, mobile web, mobile apps and connected TVs. LKQD offers Infrastructure as a Service (IaaS) technology for ad serving, mediation, programmatic auctions and advanced reporting.
“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. 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,” said Perry Sook, chairman, president and CEO of Nexstar, in a statement.
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“This is a win-win for clients on both sides, as Nexstar’s suite of local and national digital marketing products, content monetization solutions and digital services combined with LKQD’s end-to-end digital video advertising infrastructure technology, will allow small and mid-sized media publishers and businesses to maximize revenues across every available channel. Nexstar Digital has a strong position in the rapidly growing digital media and advertising technology market and we are excited to join their team as Nexstar’s resources and expertise will help power LKQD’s next phase of growth as we continue to expand our brand, technology capabilities and market presence,” said Brian DeFrancesco, CEO of LKQD, in a statement.
Nexstar said the deal is subject to working capital and other adjustments including a minimum cash balance of $10 million, and a contingent earn out payment based on LKQD’s performance at the end of two years under Nexstar’s ownership.