QMS Media has entered into an agreement for a proposed merger of its NZ digital out-of-home business and Mediaworks, a local independent radio, TV and digital business.
The result of the merger would create the largest media group in New Zealand and is the first in the market to combine OOH, radio, TV and digital.
The transaction is subject to final binding terms as well as several customary conditions and is expected to complete in the second quarter of calendar year 2019.
The proposed merger would see QMS merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return will receive a material, but not controlling, share of the company in the expanded MediaWorks business.
“Under Michael Anderson’s leadership MediaWorks has made great strides over the past two years," MediaWorks chairman Jack Matthews said.
"With this proposed merger, MediaWorks will be able to further enhance its ability to deliver high-quality local content and more effective advertising solutions to our customers. It will represent a significant investment in and commitment to New Zealand.”
According to QMS, the proposed merged group will deliver "compelling value for advertisers" via an expanded sales network and cross-stream revenue synergies.
“New Zealand is important to our business and we are excited about the potential opportunity to create a leading multi-media group that will transform the New Zealand advertising industry," QMS Media chairman Wayne Stevenson said.
The announcement caps off a year of growth and expansion for the Australian OOH business, which last week revealed it had plans for further investment into its QMS Sports network, headed up by ex-media boss Mark Pejic.
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