In-store media provider Mood Media Corporation (TSX:MM/ LSE AIM:MM) announced Thursday the acquisition of PELIKA Business Music Oy (Pelika) for USD 9.8 million, implying an acquisition multiple of 4.9 x EBITDA we understand.
Pelika is a dominant market leader in digital business music solutions in Finland, predominantly serving clients in the hospitality sector. Lorne Abony, CEO & Chairman of Mood Media Corporation told us “We are excited about the Pelika acquisition for a number of reasons. Firstly, Pelika has a clear market leadership position in the Nordic region and its acquisition at an attractive multiple strengthens and scales Mood’s international in-store media network”
He added “Secondly, Mood is acquiring a strong product as well as a strong operating business. We believe that Pelika’s specialized bar and restaurant product has applicability across Mood’s international network in the hospitality sector, a market segment where we see strong growth potential. By acquiring Pelika we immediately acquire the ability to serve this segment while eliminating potentially significant development costs”.
“Finally, the acquisition will enable Pelika’s management team to sell Mood Media’s wider range of digital signage and other in-store media products and services to their long-term client base. The Pelika acquisition further cements Mood’s leadership in Europe”.
Pelika management are expected to remain with the business.