* Second time in a year DG has weighed sale-source
* DG has held talks with H&F, Thoma Bravo-source
* Extreme Reach, TA Associates also interested-source
By Soyoung Kim
NEW YORK, May 25 Advertising distribution
company Digital Generation Inc (DG) is weighing a
potential sale and has drawn interest from several private
equity firms and rival companies, according to a person familiar
with the matter.
Buyout firms Hellman & Friedman, Thoma Bravo, Extreme Reach
backed by Providence Equity Partners, and TA Associates are
among the parties that have evaluated a potential purchase of
DG, formerly known as DG FastChannel, the source said.
Goldman Sachs Group is advising DG on a potential
sale, the source said, adding that this is at least the second
time in a year that the company has searched for a buyer.
DG's market value, which had approached $900 million just a
year ago, has plunged to as low as $240 million, hit by its
costly acquisition of digital advertising company MediaMind in
June and lower ad volumes amid increased competition.
DG did not return calls for comment. Goldman Sachs, Hellman
& Friedman, Extreme Reach and Thoma Bravo declined to comment.
Providence Equity and TA Associates had no immediate comment.
Irving, Texas-based DG helps advertisers engage with
consumers across television and online media, while delivering
The company said it helps more than 11,000 global
advertisers and agencies connect with target audiences through
TV stations and Web publishers in 75 countries.
DG shares closed up 0.7 percent at $8.64 on the Nasdaq
market on Friday. The stock has lost about three-quarters of its
market value in the past year.