UPDATE 2-Cyberplex to acquire Tsavo Media for $75 mln

* Deal to immediately add to results of combined entity

* Cyberplex says to pay $40 mln in cash and shares

* To pay $35 mln through senior credit facility

* Says to raise about C$30.2 mln in private placement

* Shares fall as much as 20 pct
(Adds details, analyst comments)

By Abhiram Nandakumar

BANGALORE, May 18 (BestGrowthStock) – Cyberplex Inc (CX.TO: ), a
provider of online marketing and technology services, said it
agreed to acquire Tsavo Media for about $75 million to create
one of the largest online advertising companies in Canada.

“They certainly would be near the top, if not the top,”
Mackie Research Capital Corp analyst David Shore said.

Shore said the deal was expected by the market, since the
company raised money last year, but felt Cyberplex might not
make any more acquisitions in the near future.

“I think they will spend some time digesting this.”

Last year, Cyberplex’s offer to buy rival Burst Media Corp
(BRST.L: ) was spurned by the U.S.-based firm’s board as being
opportunistic and unreflective of the worth of the business.

Shares of Cyberplex fell as much as 20 percent early
Tuesday morning, which Shore attributed partly to the company’s
poor first-quarter results, announced on Monday.

Cyberplex posted a net loss of C$90,457 ($87,730), or
breakeven per share, compared with earnings of C$4.9 million,
or 7 Canadian cents apiece, a year ago.

Analysts on average were expecting the company to earn 1.3
Canadian cents a share, according to Thomson Reuters I/B/E/S.


Cyberplex will pay online publisher Tsavo $40.0 million in
cash and exchangeable shares, and $35.0 million in vendor
take-back notes from a senior credit facility between Tsavo and
certain lenders.

Cyberplex said the deal, expected to close by June 8, would
add immediately to results of the combined entity, and that it
would pay a break fee of $1.5 million if the agreement was

Cyberplex also said it would raise C$30.2 million in a
bought deal private placement to partly fund the acquisition.

A syndicate of underwriters, led by GMP Securities L.P.,
will pay 55 Canadian cents per Cyberplex subscription receipt,
with an over-allotment option for about 8.2 million more
receipts for total gross proceeds of about C$34.8 million.

The price is at a 21.4 percent discount to Cyberplex’s
share closing on Monday.

Each subscription receipt will be exercisable into one
common share of Cyberplex, the company said in a statement.

Toronto-based Cyberplex’s shares, which have lost nearly 25
percent of their value in the last three months, were down 20
percent at 56 Canadian cents in afternoon trade on the Toronto
Stock Exchange.

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($1=1.031 Canadian Dollar)
(Reporting by Abhiram Nandakumar in Bangalore; Editing by
Jarshad Kakkrakandy and Maju Samuel)

UPDATE 2-Cyberplex to acquire Tsavo Media for $75 mln