DG FastChannel May Seek $1 Billion in Sale as Goldman Sachs Solicits Bids

DG FastChannel Inc. (DGIT), the network operator that links advertisers with radio and television stations, is weighing a sale and working with Goldman Sachs Group Inc. (GS) to find buyers, according to three people with knowledge of the situation.

The Irving, Texas-based company, which has a market value of about $755 million, may seek $1 billion, or about 10 times earnings before interest, taxes, depreciation and amortization, said the people, who declined to be identified because the plans aren’t public. The company has started soliciting bids and most of the potential buyers are private-equity firms, they said.

DG FastChannel fell 68 cents, or 2.4 percent, to $28.21 as of 3:25 p.m. New York time in Nasdaq Stock Market trading. It has dropped 29 percent in the past year.

The company tried to sell itself twice before, according to the people. One attempt failed as buyers balked at the price, while the company halted the process another time, these people said. The current effort also may not lead to a deal.

JoAnn Horne, a spokeswoman for DG FastChannel, couldn’t be reached for comment. Andrea Rachman, a spokeswoman for Goldman, declined to comment.

DG FastChannel said today it agreed to buy MediaMind Technologies Inc., a New York-based provider of integrated digital advertising solutions, for $517 million.

To contact the reporter on this story: Serena Saitto in New York at ssaitto@bloomberg.net. Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net.

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