DG Systems Inc., a digital distributor of television and radio advertising, has entered an agreement to purchase, for $15 million in cash, AGT-Broadcast, a division of Applied Graphics Technologies.
DG Systems distributes advertising via the Internet, satellite and through overnight shipments of tapes or DVDs. AGT-Broadcast provides duplication and other distribution services used in TV and radio advertising.
With this acquisition, DG Systems expects to eventually duplicate and transmit all materials for TV and radio commercials electronically, said Scott K. Ginsburg, chairman and CEO of DG Systems, during an online press conference. This is the kind of technology that will be used for distributing advertising for high definition television (HDTV), Ginsburg said.
DG Systems already maintains relationships with many of AGT-Broadcast’s customers, as DG Systems has provided services for them, as a subcontractor for AGT-Broadcast. The acquisition of AGT-Broadcast is expected to be completed during the second quarter.
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