Beijing: VisionChina Media Inc. (“VisionChina Media” or the “Company”) (Nasdaq: VISN), one of China’s largest out-of-home digital television advertising networks on mass transportation systems, today announced the completion of the Company’s previously announced acquisition of Digital Media Group, a leader in China’s subway mobile television advertising market. The transaction creates China’s largest and most comprehensive mobile television advertising network, furthering VisionChina Media’s goal to become the foremost digital television platform reaching daytime audiences in China. The total consideration for the transaction, consisting of US$160 million in cash and shares, is payable by the Company to eligible shareholders of Digital Media Group in three installments over the next two years.
“The acquisition of Digital Media Group is an important step in VisionChina Media’s strategic development,” said Limin Li, VisionChina Media’s chairman and chief executive officer. “The combination of our two media platforms allows us to broaden VisionChina Media’s subway network to match our extensive bus network. This combination of above and below ground media networks provides advertisers with an entirely new offering and has been well received thus far. We now have a greatly enhanced advertising platform that includes 22 of China’s most affluent cities, including all four of China’s Tier I cities, Beijing, Guangzhou, Shenzhen and Shanghai, as well as Hong Kong’s Airport Express line.”
“With Digital Media Group and VisionChina Media’s complementary business models and common culture of professionalism and operational excellence, we are confident in a smooth integration process,” said Scott Chen, VisionChina Media’s chief financial officer. “Looking forward, we expect to realize significant synergies in several areas including enhanced advertising pricing and greater consolidation of media assets. As we continue to integrate our two companies, we anticipate that gross margins will be impacted in the short term, but we are optimistic about the second half of 2010, as synergies are more fully realized.”