ASX-listed music company Vinyl Group is acquiring publisher Concrete Playground in a $5 million deal.
Concrete Playground, launched in 2009, is an independent digital publisher focusing on digital city guides that curate events, experiences and trends in Sydney, Melbourne, Brisbane, Auckland, and Wellington.
Its platform complements the go-to-market strategy of The Brag Media, also owned by Vinyl Group, by tapping into a similar agency network, yet serving a distinct set of clients and briefs, broadening commercial reach and diversification.
Vinyl acquired The Brag Media -- publisher of TheBrag.com, The Music Network and Tone Deaf, and Penske Media Corporation (PMC) titles Rolling Stone and Variety in Australia and New Zealand -- a year ago in an $8 million deal.
Under the terms of a binding Heads of Agreement (HoA), Vinyl would acquire 100% of the issued capital in Concrete Playground in exchange for $3.5 million in cash nd $1.5 million in shares.
Rich Fogarty, Concrete Playground’s founder and CEO, would depart the business to pursue new opportunities.
Concrete Playground’s had unaudited revenue in the past twelve months of more than $4 million, which would contribute a EBITDA (earnings before interest, taxes, depreciation, and amortisation) of about $1.5 million.
Completion of the deal is expected by February 28.
Vinyl Group CEO, Josh Simons, said Concrete Playground had built a trusted platform that audiences genuinely love, and their approach to storytelling will be a natural fit with the company's broader media strategy.
"Operationally, this acquisition will be significant for Vinyl Group — it would not only elevate our capabilities but also fast-track our path to sustained profitability, allowing us to deliver even greater value to our shareholders and partners," he said.
Fogarty, said he is immensely proud of everything Concrete Playground has achieved over the past fifteen years.
"This milestone reflects the talent, creativity and dedication of our team, along with the trust of our readers and partners," he said.
"As the business transitions to new ownership under Vinyl Group, I’m confident their vision and resources will elevate Concrete Playground to new heights, inspiring even more people to discover the very best their cities have to offer."
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