Australia’s oOh!media Limited (ASX: OML) has entered into an agreement to acquire privately-owned on-line content and publishing company Junkee Media Pty Limited.
Junkee Media is one of Australia’s fastest growing and most innovative Millennial focused new media companies. Its online publications – Junkee, inthemix, FasterLouder and native content platforms AWOL and The Cusp – attract more than 1.25 million Australian unique visitors a month and reaches more than 5.5 million Millennials through its social channels every week.
The agreement will see oOh! acquire 85% of Junkee Media for AUS 11.05m (equivalent to a valuation of AUS 13.0m for 100% of the company), with a right to acquire the remaining 15% of shares from the three remaining Junkee Media shareholders.
The acquisition is subject to satisfaction of customary conditions precedent and will be fully funded by debt using oOh!’s existing facilities. The acquisition is expected to be Adjusted EPS accretive within the first year of ownership excluding transaction costs.
oOh! Chief Executive Brendon Cook told us when he was in London a few weeks ago that oOh! has been acquiring assets that not only provide advertisers more targeted audiences but that also build on its content capabilities as part of its digital and data strategy. The strategy was developed three years ago to deliver clients a media channel that combined the unmissability of Out Of Home advertising with an integrated mobile, online and social digital offering.
Brendon Cook said “Native advertising is increasing in importance each year in Australia. This reflects trends in the US, where native advertising is growing at 17% per annum.
“We started this journey with the launch of content platform Q-view and we later added Hijacked.com.au and ShortPress.com.au to deliver advertisers a 360-degree offline and online marketing channel to reach specific audiences.
“These content platforms have generated new revenue from advertisers, in categories including telco, B2B, travel, tourism and government, who have invested in campaigns that combined Out Of Home advertising with native content running across the social, online and mobile platforms”.
He continued “Junkee Media has superior online real estate, a track-record in connecting with the desirable Millennial audience, and is among the best in the business when it comes to developing native content that works and has proven its ability to amplify advertisers messages through social channels.”
“With the rapid growth of short form social mobile video content and Junkee Media’s clear expertise in delivering this content, we are excited about the possibilities of delivering the best content across our market leading digital signage network in environments designed to engage with audiences.”
Junkee Media CEO Neil Ackland added “We are very excited to become a part of oOh!, a company that clearly shares our ambition to be at the forefront of digital innovation and content. The media landscape is changing at an incredible pace, and together we are uniquely positioned to benefit from the disruption.”
We understand that Junkee Media will be maintained as a stand-alone enterprise with its existing management team including Neil Ackland, Publisher Tim Duggan, Junkee Studio General Manager Josh Rich and CIO Ian Grant remaining in place.
In addition, a renewed related party agreement with oOh! non-executive director Tony Faure has been put in place for the continuation of advisory services to Junkee Media.
About Junkee Media
Junkee Media is one of Australia’s fastest growing and most innovative new media companies, reaching over 5.5 million engaged Millennial consumers each week. Formerly known as the Sound Alliance, Junkee Media’s titles include Junkee inthemix, FasterLouder, AWOL, and The Cusp. Junkee Media is a leader in native content, social, mobile and video.