Vinyl snaps up Concrete Playground, aims to capitalise on loyal customer base

Vinyl Group Ltd (ASX:VNL) has entered an agreement to acquire digital city guide Concrete Playground in a sale valued at $5 million across cash and shares as it aims to capitalise on the company’s customer base and solid revenues.

Concrete Playground advises users on various events, experiences and trends in cities including Sydney, Melbourne, Brisbane, Auckland, and Wellington. Vinyl sees its platform as complementing another branch of its business, youth publisher Brag Media, but bringing in a more diverse customer base.

Another key attraction is revenue, which in the past 12 months amounted to more than $4 million; this is expected to contribute a pro-forma EBITDA of $1.5 million after the deal, which will entail Vinyl taking on 100% of Concrete Playground’s issued capital for $3.5 million in cash and $1.5 million in shares.

As part of the acquisition, Concrete Playground CEO Rich Fogarty will leave the company to pursue other opportunities but will remain in place until the deal is completed to ensure a smooth transition.

Vinyl Group CEO Josh Simons said he was looking forward to securing this prime acquisition.

“We are looking forward to working with Rich and the Concrete Playground team to complete this acquisition in early 2025,” he said.

“They’ve built a trusted platform that audiences genuinely love, and their approach to storytelling will be a natural fit with our 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.”

Investors seemed impressed by the news, and at 12:48 AEDT, Vinyl was trading at 11.3 cents – a rise of 7.14% since the market opened.

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