QMS private equity sales pegs company value at $571.6 million

ASX-listed out of home and sports media provider acquired by private equity firm after days of speculation

The transformation of Australia’s out-of-home (OOH) market continues, with the sale of QMS Media to a private equity firm in a deal that pegs the company’s value at $571.6 million.

After days of speculation, the ASX-listed company announced today Quadrant Private Equity was acquiring 100 per cent of issued share capital in the QMS Media business for $1.22 per share under a court-approved scheme of arrangement. The deal values QMS’s equity at $420.6 million.

The deal has been unanimously approved by QMS’s board of directors, but remains subject to approval by shareholders as well as Australia and New Zealand’s respective overseas investment review boards. QMS consists of both an Australia and a New Zealand OOH business, as well as the QMS Sports division.

QMS Media chairman, Wayne Stevenson, said having considered a range of strategic alternatives for some or all parts of the business, the board felt the unsolicited offer from Quadrant represented the best deal. He noted over the past four years, QMS’s share price has lifted from $0.65 to the sale value of $1.22.

QMS Media CEO, Barclay Nettlefold, described the acquisition as 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 said in a statement.

Quadrant partner, Jonathon Pearce, highlighted the out-of-home provider’s sustainable growth track record as a key element in its acquisition. In its recent half-year financial report, QMS reported a 23 per cent rise in revenue to $128.9 million, with 85 per cent lift in grow profit to $90.5 million.

Within this, the QMS Australia OOH business reported an 8 per cent increase in revenue to $64.4 million and 16 per cent lift in underlying EBIDTA to $21.6 million.

“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 and New Zealand media and global sports divisions,” Pearce said.

News of QMS’s sale comes a little over 12 months after fellow ASX-listed OOH company, oOh! Media, was confirmed as the successful bidder for Adshel’s business for $570 million. The deal ended a bidding war for the Adshel business between oOh! and its rival, APN Outdoor, which saw the price tag rise by $100 million over the course of just a few months.  

Just days after the deal was done, OOH rival, JC Decaux, secured its acquisition of APN Outdoor for $1.12 billion.

News of QMS becoming part of the Quadrant stable of companies also comes just a month after the group completed its acquisitions of Stride Sports Management Holdings and subsidiary, TLA Worldwide Australia for $23.7 million.  At the time, the two deals were described as helping QMS Sport as a global integrated sports platform with a strategy across technology, infrastructure, media rights, events, talent management and merchandise.  

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia. 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 skills you need to drive better collaboration

A study published in The Harvard Business Review found the time spent in collaborative activities at work has increased by over 50 per cent in the past two decades. Larger projects; complicated problems; tighter timeframes: These require bigger teams with specialised skillsets and diverse backgrounds, often dispersed globally.

Jen Jackson

CEO, Everyday Massive

Better the bank you know?

In 2018, only 21 per cent of customers believed that banks in general had their customers best interests at heart and behave ethically. Only 26 per cent believed that banks will keep their promises; views cemented further following the Hayne Financial Services Royal Commission.

Carolyn Pitt

Head of account management, Hulsbosch

What 15 years of emotional intelligence told us about youth media audiences

Taking people on an emotional journey through content is the most critical part of being a publisher. Which is why emotion lies at the heart of VICE Media.

Stephanie Winkler

Head of insights, VICE Asia-Pacific

I have recently worked on Big Data while studying on my certificate exam SAA-C01 Braindumps provides authentic IT Certification exams pre...

samried

The CIO and CMO Perspective on Big Data

Read more

Thanks for sharing the insights. The findings are spot on according to several encounters we had with various brands in the luxury retail...

Xen Chia

Report: Only 11 per cent of brands use customer data effectively

Read more

I think they are overpriced. Don't you think so? I won't buy them.

Donna Green

Apple Watch arrives April 24, some models top $10K

Read more

Energy Makeovers provides services to building owners to reduce their energy consumption and emissions, including replacing halogen light...

samried

How one energy company is giving itself a social media makeover

Read more

That's an interesting use for biometrics, to actually assist in predictive analysis of campaign success.

Simon Smith

Facial recognition technology being used in a new out-of-home campaign

Read more

Latest Podcast

More podcasts

Sign in