U.S. entertainment company Cinedigm Corp. plans to purchase video technology and distribution company Future Today Inc. for $60 million in cash and stock.
The deal will roughly triple Cinedigm's online audience to 7.6 million monthly active users, a key metric in the burgeoning business of streaming video.
Cinedigm will pay $45 million in cash and $15 million in its stock, in the transaction. Cinedigm expects the purchase to be immediately accretive to its earnings.
Future Today became cash-flow positive last year, reporting an estimated $23.9 million in revenues.