IBJNews

Emmis acquires majority stake in software firm

Back to TopCommentsE-mailPrintBookmark and Share

Emmis Communications Corp. said Monday that it acquired a controlling interest in Indianapolis-based pricing software firm Digonex Technologies Inc. in a deal worth about $5 million.

Locally based Emmis said it paid $3 million for a 51-percent equity share of Digonex, which will allow it to appoint a majority of the company's board of directors. Emmis said it will make an additional investment of $2 million in the company within a few months, increasing its stake to 66 percent.

Digonex's "dynamic pricing" software compiles sales data for clients and adjusts prices up or down to maximize profit. Its clients include the Indianapolis Zoo, the Anaheim Ducks, Lids Sports Group  and the University of Washington.

The software firm, founded by Jan Eglen in 2000, has 17 employees. Emmis said there are no immediate plans to reduce or add to Digonex employee base.

Eglen, 71, will change his title from CEO to founder/executive vice president and chief scientist as part of the deal. Emmis said he will retain an active role in the company.

Greg Loewen, Emmis' chief strategy officer and president of Emmis Publishing, will become president and CEO of Digonex while retaining his current titles.

Digonex recently worked with Emmis on the pricing for one of its radio station's summer concerts.

Emmis CEO Jeff Smulyan said the two firms will help each other.

"We are certain that dynamic pricing is the future of all inventory management," Smulyan said. "As a company that sells hundreds of millions of dollars in advertising units, we believe that this acquisition will help us find the optimal price for our entire inventory and increase revenue opportunities. We also believe that our operational skills, including our expertise in sales, marketing and finance, will help the Digonex team become a leader in this space."

The Indianapolis Zoo consulted with Digonex before recently changing to a variable pricing strategy.

Emmis owns 19 FM and 4 AM radio stations in major U.S. markets, including WIBC-FM 93.1, WLHK-FM “The Hank” 97.1 and WYXB-FM 105.7.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

ADVERTISEMENT