DG Buys Limelight’s Rich Media Ad Unit EyeWonder For $66M In Cash

Publicly-listed DG, which provides digital media solutions and tech to the advertising and entertainment industries, has agreed to take over Limelight Networks’ video and rich media advertising unit, EyeWonder, for roughly $66 million in cash.

For the record: Limelight had acquired EyeWonder in 2009 for up to $110 million (in cash and stock).

Limelight this morning also announced a share repurchase program as well as updated its third quarter 2011 financial guidance as a result of the EyeWonder transaction.

Founded in 1999, EyeWonder provides a range of interactive ad products and services, including online video and rich media solutions, to Fortune 1000 companies and marketers worldwide.

DG – formerly DG FastChannel – says it expects EyeWonder to generate revenues of approximately $36 million to $37 million for full year 2011.

The transaction, which is subject to customary closing terms and conditions, is expected to close on September 1, 2011.

DG serves more than 5,000 advertisers and agencies through a media distribution network of more than 28,000 radio, television and print publishing destinations throughout the United States, Canada and Europe. DG’s internet division now comprises MediaMind, EyeWonder and Unicast.