YANGAROO Inc. (TSXV:YOO) acquired Digital Media Services Inc for $5.5 million on May 21, 2021. Yangaroo will acquire the business of Digital Media Services for a total consideration of $2.5 million paid on closing (“Base Consideration”) with an additional $3 million to be paid over three years and contingent on the Digital Media Services business hitting certain revenue targets based on the 2019 fiscal year (“Earn-Out Consideration”). Total consideration of $5.5 million is inclusive of the Base Consideration and Earn-Out Consideration, if applicable. The acquisition and related transaction costs are to be funded through a committed debt financing package underwritten by the National Bank of Canada (“NBC”) and Yangaroo's existing cash on hand. The package represents a total commitment from NBC of CAD 5.5 million ($4.54792 million) (“Acquisition Facility”) and will facilitate Yangaroo with the DMS acquisition, working capital requirements, and assist with future commercial and strategic banking. Earn-Out
Consideration, if triggered by revenue targets, will be financed through cash-flow expected to be generated over the three year earn-out period. Digital Media Services generated revenue of approximately $4 million in 2020. BDO Canada LLP acted as due diligence provider to the company.

YANGAROO Inc. (TSXV:YOO) completed the acquisition of Digital Media Services Inc on May 21, 2021.