Photo by Connor Coyne on Unsplash.
ASX-listed Australian multi-platform sports media, content and entertainment company Sports Entertainment Group (SEG) is acquiring MediaWorks, the New Zealand audio network for $NZ130 million (AUD107.4 million).
The deal creates a trans-Tasman audio, digital and entertainment group with combined weekly audiences of more than 5 million listeners across Australia and New Zealand.
MediaWorks has a 59% audience share in the 25–54 demographic, and includes the rova digital audio platform which has more than 540,000 monthly active users
The MediaWorks management team, led by CEO Wendy Palmer, is expected to continue to lead the New Zealand business.
“The acquisition of MediaWorks is a transformational step for SEG,” said CEO Craig Hutchison.
“It gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital and entertainment capability across the Tasman.
“We are impressed by the MediaWorks team and look forward to working with Wendy Palmer and her team as we bring the two businesses together.”
Palmer said SEG is a media company that shares MediaWorks' relentless focus on audiences and customers.
"Their investment in our future is a strong vote of confidence in this team, our brands and the position we've built as New Zealand's leading audio and digital business," she said.
"Joining forces gives our team access to genuine scale and capability. We're looking forward to what we can build together across the Tasman.”
The acquisition will be funded via a combination of existing cash reserves and a new $87.6 million senior debt facility from the Commonwealth Bank.
SEG has launched a share placement to raise up to $A11.7 million.
Mediaworks had revenue of $A131.2 million in the year to June.
SEG reported full year revenue up 38% to $A152.8 million.
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