In a major shakeup in the digital audio industry, podcast specialist Audioboom is buying digital audio tech firm Triton Digital in a reverse takeover. Under the proposed deal announced Tuesday morning, U.K.-based Audioboom will buy the share capital of Triton Digital’s parent company, Triton Digital Canada Inc., for $185 million. The combined company will be renamed Triton Digital Group.
Audioboom will raise around $215 million (£35 million) in new shares to fund the deal — well above its market capitalization of around $48.6 million (£35 million).
Triton CEO Neal Schore will be named president & CEO of the combined company while Audioboom CEO Robert Proctor is named executive director. Triton CFO Mark Rosenbaum will become executive VP and CFO.
The transaction is subject to shareholder approval and contingent on executing a share purchase agreement and raising the funds necessary to finance the acquisition. Audioboom has temporarily suspended trading on the London Stock Exchange (AIM) while the transaction moves through the process.
The directors of Audioboom see the marriage as “an opportunity to combine leading audio infrastructure, metrics and ad-serving companies that service the expanding global live and on-demand publisher base.” In announcing the deal they point to “natural synergies between the businesses,” including complementary functionality, client bases and global footprints. The combination has the potential “to be a leading global digital audio services provider to both live and on-demand publishers, with the scale and reach to capture a significant share of the revenues available within the global online audio industry as a whole,” Audioboom said.
Read more on what the Triton-Audioboom merger means for radio in tomorrow morning’s Inside Radio.