Nexstar Broadcasting Group has agreed to acquire the digital publishing platform Internet Broadcasting Systems (IB) for $20 million. The deal is expected to close later in March.
Founded in 1996, Internet Broadcasting is headquartered in St. Paul, Minn. IB’s online clients include Hearst Television and Post-Newsweek Stations. IB will operate as a separate division in Nexstar’s digital media portfolio.
“IB’s leading digital publishing platform adds new IP and digital workflows to our digital platform offerings,” said Tom O’Brien, Nexstar executive VP of digital media and chief revenue officer, “allowing us to marry best-of-breed digital media practices from our current operations with those of IB to deliver more fully-integrated digital management solutions to IB’s clients and our markets to generate new revenue across multiple digital platforms."
The purchase price represents a mid-5x multiple of pro-forma 2014 earnings before interest, taxes, depreciation and amortization (EBITDA), said Nexstar, which is consistent with its recent station acquisitions.
“Consistent with our long-term strategic objective to identify and execute accretive transactions that build our revenue, scale and operating base, Nexstar intends to continue to focus on digital investments that allow us to further expand the company’s overall digital media business portfolio, capitalize on emerging market trends to maximize multi-platform audiences and revenue opportunities,” said Perry Sook (pictured), chairman, president and CEO of Nexstar.
Nexstar picked up the digital publisher Inergize Digital in a Newport Television station acquisition in 2012.