focus-media-shells-out-350-million-for-cgen

Focus Media shells out $350 million for CGEN

Focus Media consolidates its position in outdoor advertising by offering up to $350 million for CGEN, representing a multiple of 17 times trailing sales.
December 11, 2007
Focus Media, China's largest digital media group, is to buy CGEN Digital Media for up to $350 million in a combined cash and stock deal.

Focus Media will buy 100% of CGEN, paying $168.4 million in cash and up to $181.6 million in cash and Focus Media shares. Focus Media shares have been valued at $53.42 per ADS, with each ADS representing five Focus Media shares. The second tranche of the payment is contingent upon CGEN meeting pre-defined earnings targets over a two-year period after the deal closes.

CGEN operates an in-store television advertising network in China, inside large-format retail chain stores, such as hypermarkets and home-improvement superstores. As of October 2007, CGEN...
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