DG Systems Closes Acquisition of PDR Productions; Company significantly expands its presence, capabilities in New York market.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 8, 1996--Digital Generation Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DGIT), a leading provider of electronic distribution services to the broadcast industry, today announced the closing of its purchase of PDR PDR A trademark for Physicians' Desk Reference, a group of reference books containing drug listings, especially one for prescription drugs. PDR Productions, Inc., a leading media duplication and distribution company based in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Terms of the purchase price for the transaction were revised to substitute a one-year, $2.5 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. in lieu of DG Systems issuing any shares of its stock. As provided for in the definitive agreement between the two companies, the cash portion of the purchase price was increased from $6.0 million to $6.5 million to cover the amount by which PDR Productions' net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. were in excess of $1.0 million on the closing date. PDR Productions is one of the leading providers of audio and video duplication and distribution services in the New York City metropolitan area. In 1995, PDR operated profitably with revenues in excess of $7.5 million. PDR's customer base includes major New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of advertisers, agencies and syndicators, which need to distribute their advertising and programming to broadcast stations and networks as well as cable interconnects and networks located across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . PDR has been a major customer of DG Systems' digital audio distribution services for the past three years, and DG Systems currently intends to operate PDR under its current name as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . "DG Systems' combination with PDR is synergistic for several reasons," stated Henry Donaldson, DG Systems' president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Through this acquisition, DG Systems gains greater access to a number of large New York agencies, advertisers, syndicators and cable networks. In addition, we will now have the ability to provide a full compliment of video distribution services to all customers in the New York City metro area," added Donaldson. "PDR, in turn, gains access to the latest digital distribution technology and the largest broadcast distribution network in the industry," continued Donaldson. "Our respective customers will benefit from an expanded set of ancillary and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services designed to better meet their broadcast advertising and programming delivery needs." Founded in 1991, Digital Generation Systems, Inc. is a leading provider of electronic distribution services to the broadcast industry, linking hundreds of advertisers, agencies, music companies, and syndicators with over 5,000 broadcast stations in the United States. DG Systems offers a family of services for quick and reliable delivery of CD-quality advertisements, new music singles, and short-form programming to radio stations, along with associated traffic instructions and supporting promotional material. The company also offers a family of services for rapid, reliable delivery of high-quality advertisements and associated traffic instructions to television stations and cable interconnects. DG Systems is headquartered in San Francisco, with field offices in New York, Chicago, Los Angeles, and Washington, D.C. DG Systems can be reached at 415/276-6600 or www.dgsystems.com on the World Wide Web. -0- Note to Editors: DG Systems is a trademark of Digital Generation Systems, Inc. CONTACT: DG Systems Jeff Byrne, 415/276-6600 jbyrne@dgsystems.com or Tom Shanahan, 415/276-6600 tsha1@dgsystems.com or Thomas Associates Robert Schettino, 415/596-2700 bobtino@thomaspr.com |
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