Digital sport outdoor media labeled as new $20m investment for QMS Media
Outdoor media company QMS is looking at spending $22.4m in digital sport outdoor media and technology assets, with the news following on from yesterday’s trading halt.
QMS Media (ASX: QMS) has entered into a binding agreement to acquire an 80% stake in digital and creative signage company Out and About Marketing and Media (OAMM) for $10m plus acquisition of $1.25m in debt.
OAMM which specialises in stadium advertising and sports sponsorship across Australian and New Zealand is part of QMS’ digital sport investment plan.
Ed Abbott, OAMM CEO, will retain 20% of the company and remain managing the business.
QMS has also acquired a 50% stake in Live Docklands, one of the rights holders to digital advertising at Etihad Football Stadium.
With a stake in Live Docklands, QMS will be part of a five-plus-two year agreement with Etihad Stadium with further opportunity for digital developments surrounding the stadium.
The outdoor company has also completed the acquisition of a 20% stake in a sporting mobile app developer Sportsmate Australia which will see QMS reach sporting codes including the AFL, NRL, Cricket, Rugby, Soccer, NFL and NBA.
The investment cost the company $1.1m and will allow the business to connect with sports fans as they interact with their favourite sports and clubs.
According to a press release published to the ASX, the acquisitions aims to “strengthen its position in key strategic markets, including Sydney and New Zealand”, and will provide access to “a large, appealing and engaged audience demographic, under the newly-launched ‘QMS Sport’ brand”.
The investments will allow the company access to millions of attendees and a broader reach to both broadcast and digital sports viewers and opportunities for multi-platform engagement.
The associated transaction fee will be funded through existing debt facilities and a market funded $20 million.
Barclay Nettlefold: Sporting venues are an ideal environment to connect with people
Barclay Nettlefold, managing director and CEO at QMS, said: “These investments are aligned with our strategy to continue to strengthen our portfolio of premium outdoor media assets and broaden our capabilities to engage with attractive, targeted audiences through multiple platforms with dynamic, customised content.
“Sporting venues are an ideal environment to connect with people, with highly engaged audiences, long dwell times, built-in digital infrastructure, and wi-fi connectivity.
Nettlefold said the sporting, signage, technology and data investment opportunity will allow the company to access a great audience pool.
According to the statement filed to the ASX, QMS expects “the acquisitions will contribute an additional c. $1.0m EBITDA (before transaction costs during FY17”, and in FY18 “the acquisitions are expected to contribute EBITDA of c. $3.8m”.
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