Nexstar Media Group to Acquire Leading Digital Video Advertising Infrastructure Platform, LKQD Technologies, for $90 …

IRVING, Texas–(BUSINESS WIRE)–Nexstar Media Group, Inc. (Nasdaq: NXST) (“Nexstar” or the “Company”)
announced today that it entered into a definitive agreement to acquire LKQD
Technologies
(“LKQD”), a leading independent video advertising
infrastructure company, for approximately $90 million cash, subject to
working capital and other adjustments including a minimum cash balance
of $10 million, and a contingent earn out payment based on LKQD’s
performance at the end of two years under Nexstar’s ownership. The
transaction is expected to be immediately accretive to Nexstar’s
operating results and free cash flow, does not materially alter the
Company’s leverage position and will be financed with cash generated
from operations and funds provided by the Company’s revolving credit
facility.

Founded in 2014 by industry veterans, LKQD Technologies’ video
advertising platform has the largest reach in the US to viewers across
digital devices, (comScore Video Metrix®, Video Ad Ecosystem
rankings, August, 2017
). The acquisition of LKQD substantially
broadens and diversifies Nexstar Digital’s portfolio with
industry-leading, brand safe systems and technologies that are
complementary to its current offerings of leading digital solutions and
services for media publishers, and compelling and effective
multi-platform marketing solutions for local and national advertisers.

LKQD provides enterprise digital video advertising technology
infrastructure for publishers and advertisers on all screens reaching
approximately 115 million US online video viewers across desktop,
mobile-web, mobile-app and connected TVs. Designed for flexibility,
scalability and speed, LKQD’s Infrastructure as a Service (IaaS)
technology provides end-to-end systems for ad serving, mediation,
programmatic auctions and advanced reporting— allowing publishers to
book, manage, optimize and track their operations in real-time from one
dashboard.

LKQD’s large-scale, diversified video supply combined with Nexstar’s
robust audience reach across 170 stations and 100 U.S. markets and
significant hyper-local digital/ mobile platforms, will create new video
opportunities which will allow Nexstar’s advertising clients to target
their customers across both the television and digital video landscapes.
Over the past twelve months LKQD expanded its technology to meet
increasing demand for its products and solutions among digital
publishers, media partners and advertisers. As a result, in the first
half of 2017, LKQD tripled the number of customers using its platform
and generated year-over-year gross revenue growth of 180%, outpacing
overall video advertising industry revenue growth by approximately 8x.

Perry A. Sook, Chairman, President and Chief Executive Officer of
Nexstar added, “Our acquisition of LKQD is consistent with our long-term
strategic and financial growth objectives for Nexstar Digital as we
unify, expand and invest in our technology platform to optimize results
for our clients, while developing new revenue opportunities. By adhering
to our disciplined acquisition and integration criteria, we are
acquiring the leading, fast-growing, profitable, online video
advertising business at an attractive, accretive valuation. Looking
ahead, we continue to evaluate additional digital investments and select
accretive transactions to drive the next phase of growth and success for
Nexstar Digital.”

Gregory R. Raifman, President of Nexstar Digital, commented, “The
acquisition of LKQD significantly strengthens and expands Nexstar
Digital’s product offerings with flexible and scalable end-to-end
technology infrastructure systems that enable cross-device ad delivery
with multi-dimensional analytics and reporting— giving buyers and
sellers the power to efficiently reach audiences across all screens and
devices. LKQD’s rapidly growing revenue, expanded client base and
market-leading enterprise video ad technology infrastructure are key
differentiators and represent an excellent strategic fit with Nexstar
Digital’s leading local digital marketing tools, content monetization
solutions and digital agency services.

“Importantly, in an environment where brands and ad buyers are
rightfully concerned with online ad safety, LKQD’s inventory is among
the highest quality in the ecosystem. This focus results in
industry-leading metrics with respect to mitigating fraudulent traffic
and ensuring brand safety. LKQD brings to Nexstar Digital a leading,
fast-growing, profitable, online video advertising business that will
enable us to further improve our competitiveness with other media and
deliver more brand safe solutions to advertisers and brands.”

Senior members of the LKQD management team, including CEO and Co-Founder
Brian DeFrancesco and CTO and Co-Founder Christophe Clapp, have entered
into employment agreements with Nexstar and LKQD will continue to
operate its growing business as a division of Nexstar Digital.

Brian DeFrancesco, CEO of LKQD stated, “This is a win-win for clients on
both sides, as Nexstar’s suite of local and national digital marketing
products, content monetization solutions and digital services combined
with LKQD’s end-to-end digital video advertising infrastructure
technology, will allow small and mid-sized media publishers and
businesses to maximize revenues across every available channel. Nexstar
Digital has a strong position in the rapidly growing digital media and
advertising technology market and we are excited to join their team as
Nexstar’s resources and expertise will help power LKQD’s next phase of
growth as we continue to expand our brand, technology capabilities and
market presence.”

The transaction is expected to close late in 2017 or the first quarter
of 2018 and is subject to Hart-Scott-Rodino (HSR) approval and other
customary closing conditions.

About Nexstar Media Group, Inc.

Nexstar Media Group is a leading diversified media company that
leverages localism to bring new services and value to consumers and
advertisers through its traditional media, digital and mobile media
platforms. Nexstar owns, operates, programs or provides sales and other
services to 170 television stations and related digital multicast
signals reaching 100 markets or approximately 39% of all U.S. television
households. Nexstar’s portfolio includes primary affiliates of NBC, CBS,
ABC, FOX, MyNetworkTV and The CW. Nexstar’s community portal websites
offer additional hyper-local content and verticals for consumers and
advertisers, allowing audiences to choose where, when and how they
access content while creating new revenue opportunities. For more
information please visit www.nexstar.tv.

About Nexstar Digital LLC

Nexstar
Digital LLC
, a wholly-owned subsidiary of Nexstar
Media Group, Inc.
(Nasdaq: NXST), offers media companies and
advertisers a comprehensive suite of leading digital solutions and
services focused on optimizing audience targeting, user engagement and
the overall performance of online, mobile and multimedia content and
marketing campaigns. Nexstar Digital’s enterprise-class publishing
platforms, mobile video monetization technology and professional digital
agency services deliver powerful digital advertising and content
monetization solutions to clients across the United States. Nexstar
Digital products include HYFN, Mass2, and Lakana. For more
information please visit nexstar.tv/digital.

About LKQD Technologies

LKQD builds technology that improves video advertising. The Company’s
open infrastructure powers a flexible and scalable end-to-end technology
stack that enables digital video sellers and buyers to build and grow
their businesses. LKQD’s Infrastructure as a Service (IaaS) technology
provides a suite of integrated solutions from centralized ad serving,
data management and advanced reporting, to highly scalable inventory and
demand. Hundreds of companies leverage LKQD’s technology to power their
entire video advertising business and customize solutions to efficiently
scale across mobile, desktop, and connected TV.

Forward-Looking Statements

This communication includes forward-looking statements. We have based
these forward-looking statements on our current expectations and
projections about future events. Forward-looking statements include
information preceded by, followed by, or that includes the words
“guidance,” “believes,” “expects,” “anticipates,” “could,” or similar
expressions. For these statements, Nexstar claims the protection of the
safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The forward-looking statements
contained in this communication, concerning, among other things, future
financial performance, including changes in net revenue, cash flow and
operating expenses, involve risks and uncertainties, and are subject to
change based on various important factors, including the impact of
changes in national and regional economies, the ability to service and
refinance our outstanding debt, successful integration of acquired
television stations and digital businesses (including achievement of
synergies and cost reductions), pricing fluctuations in local and
national advertising, future regulatory actions and conditions in the
television stations’ operating areas, competition from others in the
broadcast television markets, volatility in programming costs, the
effects of governmental regulation of broadcasting, industry
consolidation, technological developments and major world news events.
Nexstar undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. In light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this communication might not occur.
You should not place undue reliance on these forward-looking statements,
which speak only as of the date of this release. For more details on
factors that could affect these expectations, please see Nexstar’s other
filings with the SEC.

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