- Billboard advertisers QMS Media has joined forces with New Zealand based MediaWorks through a merger this morning
- The merged companies now hold the biggest grip on New Zealand’s advertising industry
- QMS will hold 40 per cent interest in the newly combined company, along with two out of the five seats on the board of members — fund managers Oaktree Capital will own 60 per cent of the business
- From the deal, QMS management is expecting a capital return of A$38 million — which will be used to be repay its current debt facilities
The media industry in New Zealand will never be the same after today, following the joining of powerhouses MediaWorks and QMS Media.
The industry co-horts officially completed a merger this morning, which first gained approval late last month.
The combined portfolio of the two companies establishes the largest media audience in New Zealand, posing a threat to the rest of the industry with little-to-no chance of standing up to the alliance.
QMS operates in both Australia and New Zealand, specialising in plastering advertising across billboards and bus stops.
Gobbling up business from MediaWorks means the company now has its hands on an array of television, radio and online advertising campaigns.
QMS Group CEO Barclay Nettlefold spoke today on the force of nature reckoning from within QMS’ and MediaWorks mammoth portfolio.
“The merged QMS NZ and MediaWorks business will be the first in market to realise the combined power of out-of-home, radio, TV and digital as an unrivalled destination for advertisers to build brands and maximise audience reach,” he said.
“The merger will deliver compelling value for advertisers and maximise cross platform revenue synergies for the business.”
If the combined portfolio wasn’t enough, the merged companies announced today they have already entered an agreement to acquire ETC Media’s billboard portfolio.
The portfolio from the Christchurch based company will add an additional 12 billboards to the QMS-MediaWorks roster.
“For QMS, the merged business remains a substantial ongoing investment in the New Zealand market where the combined capabilities of QMS NZ and MediaWorks can build on their existing market positions to drive future revenue growth,” Barclay added.
“The merger and capital return realise value for QMS shareholders, better positioning the Company to take advantage of compelling future investment opportunities as they arise.”
QMS will hold 40 per cent interest in the newly combined company, along with two out of the five seats on the board of members. Fund managers Oaktree Capital will own 60 per cent of the business.
From the deal, QMS management is expecting a capital return of A$38 million — which will be used to repay its current debt facilities.
“We are very pleased to complete this partnership with QMS,” MediaWorks Chairman Jack Matthews said.
“The addition of QMS’ very strong out-of-home business will give MediaWorks an unparalleled portfolio of assets to deliver outstanding results to our customers.”
Share prices in QMS are on an upswing today, trading 1.2 per cent higher for 84 cents per share.
The company’s market cap is currently valued at $285.9 million.