SITO Mobile, the consumer behavior and location sciences company based in Jersey City, has agreed to acquire MediaJel Inc., a provider of cannabis advertising and marketing solutions, SITO announced Monday.
Under the definitive agreement, SITO will acquire 100% of MediaJel’s equity interests in an all-stock transaction, according to a news release. MediaJel CEO Jake Litke, along with Chief Operations Officer Jonathan Black, will remain the leaders of the company, and will become CEO and COO of SITO after the deal is complete.
While SITO Chief Financial Officer Gregg Saunders will remain in that role, SITO CEO Tom Pallack will transition to a consulting role.
“We feel extremely fortunate in acquiring the leadership and proven talent in MediaJel, especially Jake Litke, who is a highly regarded visionary leader within the mobile and advertising industry and who founded and served as CEO of Media Cannon, a mobile advertising company that he sold in 2010,” Pallack said in a prepared statement. “We believe the combination of our two companies will provide for highly significant sales growth and product development in a rapid time frame.”
MediaJel’s shareholders will receive a total 20 million newly issued shares of SITO stock in exchange for their own, and MediaJel will become a wholly owned subsidiary of the New Jersey company, according to the release. After close, current shareholders of MediaJel will own about 44% of the combined company, while current SITO shareholders will own about 56%.
Both boards have approved the deal, which is expected to close in the fourth quarter of 2019 or first quarter of 2020, pending customary approvals and conditions.
Pepper Hamilton LLP was legal adviser to SITO, while Graubard Miller was legal adviser to MediaJel and Ladenburg Thalmann & Co. Inc. was its exclusive financial adviser.
