ASX-listed outdoor advertising company APN Outdoor has signed two deals worth more than $32 million deal to acquire competitors Metrospace and iOM and boost its stake in the Queensland and Victorian outdoor markets.
APN will pay between $16.3 million and $19.5 million for Queensland-based Metrospace and its 110 outdoor panels, and will acquire privately-owned, Victoria-based iOM for $16 million.
APN CEO Richard Herring announced the moves in a statement to the ASX:
We are delighted to announce both proposed acquisitions. The Metrospace outdoor assets comprise an excellent portfolio of sites that not only strengthen our position in Brisbane and the wider state but presents immediate, high-quality digitisation opportunities.
Similarly, the iOM portfolio is a significant addition to our existing Victorian assets and contains recently developed digital sites as well as further exciting digital opportunities. We are pleased to consolidate our position in both states.
APN said the Metrospace sites have annualised revenue opportunities of more than $6m, while iOM assets are worth more than $7m per year. The company said it was also looking at extending its debt facilities by a further $20m to accelerate its digital roll-out program and assesses additional acquisitions.
PricewaterhouseCoopers has forecast that the Australian outdoor advertising market will be worth more than $1 billion by 2020.