Quickcut to sell to Telstra-controlled Adstream

The Telstra-owned directory company has signed a binding agreement that will see it gain a controlling interest in the merged Australian and New Zealand operations of Quickcut and Adstream, if the deal goes ahead as expected. Telstra currently holds a 33.1 per cent stake in Adstream Holdings, which, after the merger, will be equivalent to 8.1 per cent of Adstream Australia.

It proposes to transfer this stake to its wholly-owned subsidiary Sensis, which will then increase its holding to 58 per cent by paying $20 million.

The new Adstream Australia will be the largest advertising services network in Australia, incorporating Quickcut’s print-centred operations into its already established electronic media services, including online, radio, television and wireless materials. Quickcut currently delivers print advertising material to most of the major magazine and newspaper publishers in Australia and New Zealand. It also has a worldwide licensee and franchise network.

The deal will see Sensis emerge as a key media player with greater access to advertising agencies, clients and publishers, according to Robert Rath, general manager Sensis Interactive. “This is an exciting opportunity for both strategic and financial reasons,” he said.

“The merged companies will have significant stand-alone growth potential. In addition, as customer uptake of new media advertising accelerates, Adstream Australia will provide Sensis with significant online and wireless advertising opportunities to complement our core print advertising services.”


The deal is expected to open up new advertising options for Sensis’ small and medium enterprise customers, help Adstream Australia’s customers reach a wider audience through the joint Sensis and Telstra online network, and deliver new revenues streams for Sensis through corporate and government customers

The deal is expected to be completed in February 2006