oOh! Media Acquires Inlink Group

oOh! Media Acquires Inlink Group

Acquisition of Inlink Adds 2,800 Digital Out-of-Home Screens Across Australia’s Central Business Districts

AUSTRALIA —  oOh! Media has announced that it will acquire Inlink Group Limited, Australia’s largest digital out-of-home operator in office environments for $45 million. According to oOh!, the acquisition fits with the company’s  strategy of driving engagement with audiences through digital out-of-home screens in high dwell time locations.

Inlink was formed in 2001 and has grown to be a leader in the digital out-of-home market with a network of more than 2,800 digital screens located across Australia’s central business district in office towers, cafes and fitness centers.

Brendon Cook, oOh! Media’s Chief Executive said the acquisition of Inlink not only continues oOh!’s digital leadership position by expanding its network of digital out-of-home screens to more than 5,000 and WiFi network to more than 900 locations, but also taps into the highly desirable central business district (CBD) audience. WiFi networks enhances advertiser’s ability to run responsive interactive campaigns that directly connect with audiences and provide more data to help advertisers gain insights into audiences and their purchasing patterns.

Completion of the acquisition is expected to occur in December 2015 subject to customary conditions precedent and vendor shareholder approval. Inlink will merge with oOh! Media’s operating division and leverage oOh!’s shared services structure. Since its inception oOh! Media has successfully completed more than 25 acquisitions.

The acquisition is expected to be immediately accretive to oOh! Media’s EPS and will be fully funded by existing debt facilities. Once completed the acquisition will increase oOh!’s pro forma FY15 Net Debt / EBITDA from 1.0x to 1.7x  with headroom remaining in existing facilities. oOh! Media anticipates its full year 2015 Pro Forma EBITDA to be in the range of $57 to $58 million, up from its previously revised guidance of $53 to $55 million issued on 25 August 2015. This guidance reflects a 37% increase on the previous corresponding period (Pro Forma FY2014) and an 18% increase on the pro-forma FY15 Prospectus forecast.

“The upgrade comes as digital and out-of-home advertising markets continued to perform beyond expectations and oOh! continues to execute on its strategies as outlined in the Prospectus,” said Cook.

Given the expected completion timing, Inlink is expected to have minimal impact to oOh!’s FY15 pro forma earnings, excluding one off integration and transaction costs. Accordingly, no Inlink earnings are included in the pro forma EBITDA guidance provided.

“This cements our position as delivering Australia’s largest reaching digital out-of-home network that builds deep engagement between advertisers and their audiences through leading edge innovation and extends the connection beyond physical signs to mobile, social and online environments,” said Cook. “By adding Inlink’s network of more than 2,800 digital signage screens in key capital cities, we are able to expand into office towers and boost our reach in all CBD’s across the country. This significantly increases our digital out-of-home offering enabling advertisers to run targeted messages to their audiences in specific locations such as cafés, sports and fitness centers, universities and hotels.”

Editor’s Update: oOh! Media completed the acquisition of Inlink Group on December 14, 2015 for $45 million.

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The DOOH Ad Network Locator is a free online resource designed to help media buyers, planner and brand strategists identify place-based digital out-of-home advertising networks by location, venue type, demographics and reach. There are more than 160 advertising-based networks organized by country that include Australia, Canada, United States and the UK. The United States is organized by venue type as it has the broadest range of venue categories, with the greatest number of ad-based networks operating within each category.

Digital Out-of-Home (DOOH) advertising, also known as Digital Place Based (DPB) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Digital out-of-home screens can be found in locations that include transportation hubs such as airports, railway and bus terminals; executive networks in office-building lobbies and elevators. Other venues include shopping malls, gas stations, fast-casual restaurants, fitness centers, hotels and more.

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