oOh!media today announced that its parent company, Outdoor Media Operations, has entered into an agreement to acquire Ten Network Holdings Limited’s (ASX:TEN) out-of-home business, EYE Corp Pty Ltd. Chief Executive of oOh!media, Brendon Cook, said the agreement to purchase EYE Corp for up to $120 million at completion and deferred consideration of $25 million payable three years post completion, would enhance oOh!’s ability to meet its customers’ growing demand for out-of-home advertising solutions.
Combining these two companies will provide Australian advertisers with a broader range of solutions and innovative products to expand their reach in a competitive and rapidly evolving media environment, Mr Cook said.
Darren Smorgon, Director of CHAMP Private Equity said: We believe this will bring increased competitiveness into the advertising industry as the company can be more responsive to the needs of advertisers, it will accelerate the realisation of oOh!media’s growth objectives and assist in growing the Australian out-of-home sector.
oOh! will work to sell the UK and US assets to an appropriate third party, with assistance from TEN, as they do not fit within oOh’s growth strategy.
The acquisition, which is subject to customary completion conditions, including regulatory and third party consents and finalisation of certain ancillary documents, will be funded via additional investment by the company’s shareholders and facilities from oOh!’s banking syndicate.
oOh!’s Board and Management were advised by Grant Samuel, PWC and Clayton Utz.