QMS Media to be taken over by Quadrant Private Equity
QMS Media is set to disappear from the ASX after accepting a Quadrant Private Equity offer valuing it at $571.6m.
QMS Media is set to disappear from the ASX after accepting Quadrant Private Equity's $1.22-a-share cash takeover offer, valuing the outdoor advertising company at $571.6 million, including debt.
The deal comes after The Australian’s DataRoom first reported on March 8 that private equity was circling QMS and after the column revealed on Friday that a private equity suitor was tipped to embark on a takeover of the company within days.
Quadrant's move is just the latest example of industry consolidation, with QMS wrapping up its acquisition of sports business TLA Worldwide in September, which was then merged with its New Zealand operation with radio, television and digital business, MediaWorks.
French outdoor giant JCDecaux snapped up APN Outdoor for $1.12 billion and oOh!media acquired the outdoor operation Adshel from Here, There and Everywhere for $570m last year.
The deal also marks a return to the outdoor ad sector for Quadrant, which owned a 50 per cent stake in APN Outdoor before listing it on the ASX five years ago.
QMS boss Barclay Nettlefold says the deal “represents an excellent outcome for our 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.
Quadrant partner Jonathon Pearce says QMS has a proven track record of delivering sustainable growth, which bodes well for its future.
“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," Mr Pearce said in a statement.
In addition to the offer, shareholders will also be entitled to a final dividend of up to 1.3 cents a share for the year ending December 31, subject to QMS board approval.
Quadrant's takeover, which has been unanimously recommend by QMS's board, also needs the green light from its shareholders, the Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office.
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