DG Systems and StarGuide to Merge

DG Systems and StarGuide to Merge
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Digital ad distributor DG Systems Inc and 'Net transmission service provider StarGuide Digital Networks Inc. intend to merge in a tax-free stock swap.
StarGuide Digital Networks provides Internet transmission services via its "CoolCast" Internet portal. "CoolCast" delivers live, high CD-quality digital audio ads to broadband Internet users.
A centerpiece of the new entity is the combination of listeners via the CoolCast subscriber base with advertisers and distributors - radio stations.
The combined entity will aggregate 5,000 advertisers and agencies and 7,500 radio stations across the U.S. and Canada. The combined entity would have generated $61.8 million in 1999, said a spokesman.
The transaction is expected to close in the fourth quarter, subject to stockholder and regulatory approvals.
Laura Dely