TRKA - Troika Media stock slips ~7% on deal to acquire Converge Direct for $125M

Troika Media Group (NASDAQ:TRKA) has slipped 6.67% pre-market after the brand consulting firm announced a definitive deal to acquire Converge Direct and its affiliates for $125M. The acquisition, which has been approved by the Boards of Directors and the majority of shareholders of both Troika and Converge, is to close on or before March 15, 2022. Founded in 2006, Converge is an independent performance marketing and managed services business. The businesses generated ~$300M of revenue and $23M of adjusted EBITDA in 2021. Upon deal closing, Converge's 85 full time employees are expected to join Troika. The acquisition expands Troika’s presence in the digital media and performance marketing sector and is expected to be significantly accretive to adjusted EPS. It is anticipated that the majority of the combined business’ revenue will be recurring following the closing. Additionally, consolidated cost synergies of more than $2M is expected in the first year after closing. Troika

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Troika Media stock slips ~7% on deal to acquire Converge Direct for $125M