LOS ANGELES, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Alex Meruelo today issued the following statement regarding Digital Generation, Inc. (Nasdaq:DGIT):
I am Digital Generation's largest shareholder. Meruelo Investment Partners LLC and I are committed to the Company's success and maximizing value for all shareholders, including through the consummation (via the Company's existing strategic alternatives process or otherwise) of a timely sale of the Company or any other strategic alternative that is in the best interests of shareholders.
Although we value our relationship with Digital Generation and have supported the Company's existing strategic alternatives process, we have serious concerns about the process and the ability and willingness of management of the Company to act in the best interests of all shareholders. We have been disappointed by the lack of communication and transparency and have become increasingly concerned about the timing and credibility of the process. We also have significant doubts as to whether the process can be reasonably expected to maximize value for all shareholders. We believe that many of our fellow shareholders share these concerns.
We intend to call upon Digital Generation to promptly address these concerns and satisfy its reporting and disclosure obligations, including by completing the Company's strategic alternatives process in a timely manner and providing shareholders with meaningful updates and information regarding the status of the process until it is completed. We believe that it is reasonable to expect the Company to complete the process this year. We plan to ask the Company to announce the resolution of the process or, if the process is not yet then complete, provide shareholders with a substantive update regarding the status and expected timing and resolution of the process, in either case, no later than November 30, 2012.
We intend also to nominate independent directors for election to Digital Generation's board at the next annual or special meeting at which shareholders are asked to act upon the election of directors. We believe that the addition of our nominees will enhance the independence of the board, oversight of management, and the Company's other short-term and long-term corporate governance functions, including with respect to the completion of the Company's existing strategic alternatives process, as necessary, and any such future process, if the existing process fails to produce a strategic alternative that is in the best interests of shareholders.
We may suggest, recommend, propose, participate in, or otherwise pursue or seek to influence transactions involving the acquisition, sale, or exchange of all or part of the Company's securities or assets (or other actions relating to, or potentially resulting in, changes to the Company's business, condition, operations, structure, governance, management, capitalization, policies, plans, and prospects and other actions and changes), including by: making shareholder proposals or supporting the nominees or proposals of others; calling a special meeting of shareholders; and commencing a tender offer or tendering shares into a third-party tender offer.
About the Meruelo Parties
Meruelo Investment Partners LLC acts as an investment adviser or manager to other persons and accounts and may be deemed to beneficially own securities owned or held by or for the account or benefit of such persons and accounts. The principal business of Meruelo Investment Partners is serving as an investment adviser or manager to other persons and accounts.
Alex Meruelo is the President of Meruelo Investment Partners and may be deemed to control, and beneficially own securities owned or held by, Meruelo Investment Partners. The present principal occupation of Mr. Meruelo is serving as the principal of the Meruelo Group, which includes affiliated companies with significant interests in real estate management and development, utility construction, hospitality, food services (manufacturing, distribution and restaurant operations), and television broadcast media.
About the Proxy Solicitation
We intend to file a proxy statement and other soliciting materials with the SEC and use the materials to solicit proxies from shareholders of Digital Generation, Inc. in connection with a meeting of shareholders of the Company. Security holders are advised to read the proxy statement and other materials (when and if they become available) because they will contain important information, including with respect to the proxy solicitation and the participants in the solicitation. Security holders may obtain the proxy statement and other material (when and if they become available) for free at the SEC's web site at http://www.sec.gov or from the participants using the contact information provided herein or in the materials.
We intend to file this press release with the SEC on November 8, 2012 as soliciting material on Schedule 14A and include information in Exhibit 2 to the Schedule 14A with respect to the identity of the participants in the solicitation and a description of their direct or indirect interests, by security holdings or otherwise. Security holders may obtain the information for free at http://www.sec.gov or by contacting us using the contact information provided herein or in the materials.
This press release contains forward-looking statements that are subject to factors that could cause actual results to differ materially from expected results, including assumptions that may not be correct or accurate due to risks related to Digital Generation and other parties, circumstances, and conditions we cannot control or predict, the inherent uncertainty of future events, and other factors that may cause us to change our plans.
Xavier A. Gutierrez President and Chief Investment Officer Meruelo Group (562) 745-2339