APN is raising capital to buy the remaining half of Adshel for $268.4 million from US company Clear Channel Outdoor.
APN CEO and managing director Ciaran Davis says taking full control of Adshel places it in a stronger position in the Australian media industry.
"The Adshel acquisition is consistent with the plans we have outlined to focus on our assets in high growth areas, and provides APN with an opportunity to further pursue growth in the outdoor sector,” he says.
“It will allow the Adshel management team to drive the strategic direction of the business and pursue opportunities that facilitate growth, including a continued focus on innovation and the progressive digitisation of the portfolio. As the demands of advertisers rapidly change, this transaction will increase the effectiveness of implementing integrated marketing campaigns at scale, across all of APN’s businesses.”
In the 12 months to 30 June 2016, Adshel generated revenues of approximately $170 million and EBITDA of approximately $42 million.
In a separate announcement, APN will acquire the digital media business Conversant Media for an upfront cash consideration of $11.6 million and performance-based earn-outs.
When outlining the reasons for purchasing Conversant Media, APN highlighted that the business will facilitate the growth of its audience base through an “enhanced content offering and diversification of revenues into the growing revenue streams of mobile, social and video”.
APN is shoring up its outdoor assets four months after News Corp agreed to purchase its regional media newspaper business ARM for $36.6 million.
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