SYDNEY: Telstra has added to its media business, Sensis, by acquiring a controlling share in advertising services company Adstream Australia for $20 million.
Earlier today (23 December), Adstream Holdings distributed a letter of offer to Quickcut shareholders seeking approval to purchase 100% of the global Quickcut business with the intention of merging Quickcut’s Australian and New Zealand subsidiaries into Adstream Australia.
Pending the acceptance of the merger, Adstream Australia will become a partially-owned Telstra subsidiary under a shareholders’ agreement between Sensis (58% share), TV and healthcare conglomerate Paul Ramsay Holdings (32%) and Adstream Holdings (10%).
Upon the completion of the deal, Telstra will transfer its current 33.3% stake in Adstream Australia to Sensis (equalling 8.1% of the newly-merged businesses) and Sensis will acquire a further 49.9% share in the newly-merged Adstream Australia for a cash consideration of $20 million, increasing its total stake to 58%.
General manager Sensis Interactive, Robert Rath, said: “The merged companies will have significant standalone growth potential. In addition, as customer uptake of new media advertising accelerates, Adstream Australia will provide Sensis with significant online and wireless advertising opportunities to complement our core print advertising services."
Sensis claimed the deal will open up new advertising options for its small and medium enterprise customers, help Adstream Australia’s customers reach a wider audience through the joint Sensis and Telstra online network, deliver new revenue streams for Sensis through corporate and government customers, and extend Sensis’ advertising agency relationships to a much deeper level.
The transaction is likely to be completed within the next 60 days.
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