Nine Entertainment today completed the $850 million acquisition of outdoor media company QMS from Quadrant Private Equity.
Nine expects QMS to contribute $92 million of EBITDA and bring cost synergies of $20 million.
The media group’s digital growth assets (Stan, 9Now, digital mastheads and outdoor) are estimated to contribute more than 60% of group revenue, up from about 45%.
"The completion of the QMS acquisition is a defining moment for Nine,” said CEO Nine Matt Stanton.
“QMS is a high-growth, digitally-led business that complements our existing premium content and data capabilities.
“With the addition of QMS, we can offer advertisers an unparalleled cross-platform reach, while diversifying our revenue streams towards structural growth areas.
“Now the acquisition is complete, we are finalising the alignment of the Nine and QMS go to market sales strategies which will allow clients to capitalise on this powerful combination."
John O’Neill, the CEO of QMS, said the acquisition brings together a premium digital outdoor portfolio with Nine’s streaming, broadcast and publishing assets to create a powerful, integrated media offering for advertisers, agencies and partners.
“This combination positions us to deliver more data-driven, innovative solutions at scale, while also creating fantastic new opportunities for our people as part of a larger, more connected media ecosystem,” he said.
“This is an exciting new chapter for QMS, and I’m looking forward to what we will achieve together."
The completion of the QMS acquisition is part of Nine’s broader portfolio optimisation, including the sale of Nine Radio to the Laundy Family Office and the conversion of Nine’s TV interests in Northern NSW and Darwin to an affiliate structure.
These are expected to complete by the end of May, with the Northern NSW/Darwin transaction subject to Nine shareholder and ACCC approval.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.