Zoom Media Raises $30 Million From ABS Capital

Gail Chiasson, North American Editor

Zoom Media & Marketing of New York, a leading provider of targeted and digital out-of-home media and promotional programs for brand advertisers in the U.S., announced today that it has raised $30 million through the sale of a minority equity position in the company with a Series A financing to ABS Capital Partners, a leading later-stage growth company investor.

This is Zoom’s first and only partnership outside the de Gaspé Beaubien family. The minority percentage held by ABS was not disclosed.

The proceeds will be used to continue to expand Zoom’s digital networks and to make strategic acquisitions.

With $1.5 billion under management, ABS Capital (www.abscapital.com) has partnered with numerous portfolio companies to achieve successful outcomes, including over 40 initial public offerings and acquisitions by such market leaders as CBS Corporation, EMC Corporation, LabCorp and Pitney Bowes Inc.. In the technology and media field, it was an early investor in Captivate Network, American Radio, Dolan Media and Doubleclick and is currently an investor in 360i digital agency, Vibrant Media online ad network and Ignite Media direct marketing agency.

“Digital trumps everything and given the sea change occurring in media, this is the ideal time to expand our digital offerings,” says François de Gaspé Beaubien, chairman and CEO of Zoom Media & Marketing. “It’s also a tremendous time to be in targeted media. We are extremely pleased to welcome ABS as a partner. It has been a pioneer in digital out-of-home networks and we are fortunate to be able to rely on its backing and expertise as we continue to grow. Clearly our focus will be on digital.”

While Zoom has an office in London, and is huge in fitness networks in the U.K., as well as number one in fitness centres in Germany and Australia, de Gaspé Beaubien says, “For the next 12 months, our concentration will be on expanding the networks in which we operate in Canada and the U.S., but we may look at other verticals as well.”

Zoom operates digital media networks in over 2,500 venues, including extensive operations across the top 90 designated market areas in the U.S. as well as having static indoor billboard advertising in over 8,000 venues across North America. Zoom is the market leader in fitness and nightlife industries, broadcasting customized video programming, television advertising, digital signage communications and promotional venue content through digital displays in gyms, social networks (bar/restaurant) and family entertainment centre environments. It provides a variety of highly targeted advertising opportunities for brand marketers.

“We have followed Zoom’s progress and have been impressed by its solid growth and marketplace recognition,” said Deric Emry, general partner at ABS Capital Partners. “The Company’s digital approach enables Zoom to address the rapidly increasing number of advertisers who, dissatisfied with their returns on other traditional media, embrace its targeting abilities within their high dwell environments.” (People average 1 1/2 hrs. in fitness centres and between 1 1/2 and 2 hrs. in restaurant/bar locales, says de Gaspé Beaubien.)

“The combination of ABS Capital and Zoom establishes us as a key consolidator in the digital OOH industry and by far the leading digital media networks in the fitness, bowling, family entertainment and nightlife industries,” says Dennis Roche, president of Zoom Media and Marketing’s U.S. business. “With this partnership we can now expand our existing sizable digital base and offer our advertisers a comprehensive and seamless digital strategy for reaching active lifestyle audiences across multiple venue categories. Our objective will be to continue to grow our leadership position in our chosen verticals through acquisitions and build-outs over the next 18 months as we offer advertisers programs that are dynamic, flexible, and, importantly, truly national in scope.”

Zoom worked with the Baltimore office of ABS Capital Partners on the deal, while the San Francisco and New York offices of GCA Savvian acted as the exclusive financial advisor to Zoom and brought it together with ABS. GCA Savvian is a leading investment bank serving growth companies through its merger and acquisition advisory and capital market financing services. Listed on the Tokyo Stock Exchange, it also has offices has offices in Chicago, Menlo Park, and Tokyo. (www.gcasavvian.com).

In addition to operating in indoor networks in over 10,000 venues that reach active consumers, Zoom also has an in-house event marketing and promotion department that constructs custom media placements and marketing programs. With over 25,000 digital screens and over 55,000 billboard locations Zoom reaches over 100 million monthly viewers. www.zoommedia.com

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