ORIX Venture Finance announced this week that it has provided debt financing to Zoom Media Group Inc.. ORIX joins Zoom’s existing capital providers, the de Gaspé Beaubien family and ABS Capital Partners, the equity investors and owners of the Company. Zoom will use the new capital to continue to expand its existing media and advertising products and services, particularly the company’s digital advertising networks.
Whilst many other US networks have seemingly retrenched during the ‘recession’ Zoom Media have been investing and moving forward aggressively. We suspect that they have decided to raise additional funds at this time for two reasons:
- Continue expanding their digital footprint.
- Have some additional dry powder. I am sure that it is their conviction that possessing added resources at this particular moment in time is a wise strategic move.
Debt is of course a good source of capital on a solid balance sheet – we doubt if there has ever been any debt on the company since its inception over 15 years ago so bottom line I am sure that they figured now is exactly the right time to increase their source of funds.
Zoom of course provides targeted marketing and advertising solutions to advertisers through out-of-home (OOH) media and marketing programs, with a specific focus on the active lifestyle demographic. In May 2010, Zoom was named by Mediaweek magazine as one of the ’10 most innovative and successful out-of-home media companies’.
Henry O’Connor, managing director of ORIX Venture Finance told us “Zoom enjoys a strong industry reputation and is particularly recognized for its proven digital advertising technology platform. As the demand for new marketing methods is exploding, Zoom is poised to capitalize on emerging trends in the digital placed based industry with a quality product that delivers targeted solutions to the prized 18-34 demographic.”
“The strength of Zoom’s seasoned management team and the participation of the de Gaspé Beaubien family and ABS Capital Partners also gave ORIX the confidence that the company deserved our strong financial support. We are delighted to have Zoom as a partner,” O’Connor added.
Zoom Chairman and Chief Executive Officer, Francois de Gaspé Beaubien, noted “We welcome ORIX Venture Finance’s financial participation in our company as a reflection of our established leadership in delivering effective digital marketing solutions. By securing this financing, Zoom will continue expanding digital products and services as well as make further strategic acquisitions, the likes of which have already helped us double in size since 2008.”
About ORIX Venture Finance
ORIX Venture Finance provides customized financial solutions up to $50 million in capital per transaction to mid- to late-stage companies which have established customers and run-rate revenues of $10 million or greater. Since its inception in 2001, ORIX Venture Finance has invested in more than 80 growth companies throughout the U. S. and Canada.