22nd Nov 2019 10:55
(Alliance News) - Ocean Outdoor Ltd said Thursday it has agreed to acquire Swedish out-of-home and digital advertising screen operator AdCityMedia for approximately GBP24.7 million.
Ocean Outdoor said it will pay SEK165, about GBP13, per share of AdCityMedia, which is listed on the Nasdaq First North Growth Market
The transaction will be funded through Ocean Outdoor's cash on hand.
Following the completion of the offer, Ocean intends to integrate AdCityMedia within its existing operations in the Nordic region and beyond, enabling the combined entity to be more competitive through a combination of an expanded portfolio and deeper market coverage.
AdCityMedia is an out-of-home operator focused on large format digital and high-end city centre locations in Sweden and Norway, with approximately 1,500 locations and approximately 4,500 digital screens.
For the full year ending 2019, it is estimated that the business will generate revenue of approximately GBP16.5 million, Ocean Outdoor said.
Chief Executive Officer Tim Bleakley said: "This is an exciting prospect for all stakeholders across the Nordic countries and will be hugely positive for landlords, media agencies and advertisers."
Back in September, Ocean Outdoor had acquired Sweden-based digital out-of-home media group Visual Art for EUR63 million.
Ocean Outdoor shares were up 0.7% in London at USD7.65 each on Friday.
By Loreta Juodagalvyte; [email protected]
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