QMS New Zealand completes merger with MediaWorks
QMS due to receive capital of NZ$40.5mn from merger with out-of-home advertising agency MediaWorks
The merger between the New Zealand wing of the digital media production company (QMS NZ) and MediaWorks has been completed, with the resulting company keeping its Media Works name. This solidifies the company as the largest multi-platform media organisation in New Zealand.
The deal saw MediaWorks receive 40% of it’s shareholding in the expanded business with Oaktree Capital-managed funds retaining a 60% majority shareholding. QMS currently hold two seats on the board, with Wayne Stevenson, Chairman of QMS and Barclay Nettlefold, MD and Group CEO of QMS having been appointed as directors, effective immediately. MediaWorks will hold the remaining three seats on the board.
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Before the merger was completed, Stevenson said of the deal: “For QMS, this merger reinforces our prudent management of assets and realises value for shareholders from our investments in New Zealand.”
An unconditional agreement has also been struck between QMS and ETC Media’s Christchurch digital billboard portfolio, adding 12 large format digital billboards to its national portfolio.
MediaWorks acquisition will further expand its market leadership position to encompass Auckland, Wellington, Christchurch, Whangarei, Hamilton, Tauranga, Rotorua and New Plymouth.
Nettlefold said: “The merged QMS NZ and MediaWorks business will be the first in the market to realise the combined power of out-of-home, radio, tv and digital as an unrivalled destination for advertisers to build brands and maximise audience reach – the merger will deliver compelling value for advertisers and maximise cross-platform revenue synergies for the business.”
QMS is due to receive a capital return of NZ$40.5mn, which is being used to repay part of the company’s banking facility.
