Customer Acquisition Network (Canada) Inc., dba MUNDOmedia, is going public through a reverse take-over (RTO) transaction with Harmony Merger Corp. (NASDAQ: HRMN), a blank check company. The combined company, to be name Mundo Media Ltd., will become a public listed Ontario company. The transaction is expected to close in March of 2017.
MUNDOmedia is valued at up to $165 million. Shareholders of MUNDOmedia will receive $111.5 million of Mundo Media common shares, $25.0 million in cash and an earnout payment of up to $28.5 million in Mundo Media stock (valued at $10.20 per share) over the next 2 years.
Founded in 2009, MUNDOmedia has not raised any outside equity capital and has been profitable since inception. In September 2006, an investor group led by CEO Jason Theofilos acquired the company. Other major shareholders include Mark Groussman, Morden C. Lazarus, and Peter Filippopoulos.
Following the transaction, the board of directors of Mundo Media will consist of seven members. Ross Levinsohn will remain Executive Chairman, four members will be nominated by MUNDOmedia’s current shareholders and two will be nominated by Harmony.
Harmony is being represented by Graubard Miller and McCarthy Tetrault LLP and Mundo is being represented by Dorsey & Whitney LLP and Gowling WLG. William Blair is acting as financial advisor to Mundo in this transaction.
photo credit: Mundo Media