I Squared Capital Agrees $735 Million Deal for Australia’s oOh!media
Infrastructure investment firm I Squared Capital has agreed to acquire Australian outdoor advertising company oOh!media in a deal valued at A$1.04 billion, including debt, bringing a months-long takeover contest for one of Australia and New Zealand’s biggest out-of-home advertising businesses closer to an end.
The agreement, announced on August 10, values oOh!media at A$1.70 per share. I Squared emerged as the successful bidder after the company attracted interest from several investment groups during the sale process.
oOh!media operates billboards and advertising sites across roadsides, shopping centres, airports, railway stations, bus stops, office buildings and universities in Australia and New Zealand. The company says its network reaches 98% of metropolitan Australians.
For I Squared, the acquisition adds a large advertising network to a portfolio traditionally focused on infrastructure. The investor described oOh!media as an out-of-home media infrastructure platform and said it sees opportunities to support the company’s continued development.
The deal also comes as outdoor advertising becomes increasingly digital. Traditional static billboards are steadily being joined by digital screens that allow advertisers to change campaigns more quickly and use data to manage when and where advertising appears.
That makes companies such as oOh!media more than billboard owners. Their physical locations, digital screens and audience reach are becoming advertising infrastructure in their own right.
The transaction still has to pass the required shareholder and regulatory processes before it is completed.
For the advertising industry, the deal is another sign of growing investor interest in businesses that control large networks of physical media at a time when brands are trying to combine digital advertising with real-world audience reach.
