Digital out of home advertising player QMS Media Limited is being bought by Quadrant Private Equity.
The company has entered into a Scheme Implementation Deed with Quadrant for 100% of QMS at $1.22 a share.
The takeover deal gives QMS Media an enterprise value of $571.6 million and an equity value of $420.6 million.
QMS floated on the ASX in 2015 at $0.65 a share.
CEO Barclay Nettlefold says the acquisition by Quadrant represents an excellent outcome for shareholders, partners and employees.
"It is a testament to our sustained growth in a challenging market, and our continued market leading digital revenue contribution, led by our strong and experienced executive management team," he says.
Quadrant Private Equity Partner Jonathon Pearce says QMS has a proven track record of delivering sustainable growth.
"Under Barclay’s continued leadership and with Quadrant providing additional capital, we believe the business will continue to grow and deliver innovative market leading solutions to customers across the Australia & New Zealand Media and Global Sports divisions," says Pearce.
QMS chairman Wayne Stevenson says: “Having fully considered a range of strategic alternatives in relation to some or all parts of the QMS business, including the receipt of an unsolicited proposal from Quadrant, the board believes this offer allows QMS shareholders to realise significant value for their shares."
Quadrant has experience with out of home advertising business. It owned APN Outdoor before listing it on the ASX. Last year French multinational JCDecaux bought APN Outdoor for $1.2 billion.
QMS has been a stand out for growth in a soft advertising market.
The company in August reported a 65% rise to $16.5 million in first half net profit after tax. Revenue was up 23% to $128.9 million.
QMS expects second half media revenue to be 15% to 20% up on the same time last year.
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