QMS Media Limited (ASX: QMS) has formally announced that its wholly-owned subsidiary company, QMS Sport Holdings Limited (QMS Sport), has successfully acquired TLA, a leading talent management and sports marketing agency in Australia & UK.
The announcement, which was published via an ASX release, confirms the successful completion of an institutional placement of QMS shares.
The $32.7m purchase price represents 5.3 times CY2019 EBITDA, pre-synergies and was funded by $20m of QMS Media Limited debt finance and $12m unlisted equity raising.
Combined QMS Sport (including TLA) CY2020 forecast revenue of $133.6m and EBITDA of $22.0m, pre-synergies – expected annual revenue and cost synergies of between $1.0 – 2.0m to be secured by 2020.
The successful acquisition of the TLA Australia and UK businesses, including Stride Sports Management, is part of QMS’ plans to build the business into a global integrated sports platform, according to QMS Media Group CEO and managing director, Barclay Nettlefold.
“The TLA and Stride acquisitions represent the next step in the development of QMS Sport as a global integrated sports platform,” Nettlefold said.
“These acquisitions provide QMS Sport with an enhanced service offering that together creates a unique vertically integrated sports advertising platform; leveraging the strength of their respective strategic relationships with both domestic and international clubs, agencies and rights holders to broaden client service offerings and grow collective revenue streams.”
TLA Australia represents over 30% of AFL athletes/coaches/talent, 25% of professional Australia and UK cricket talent contracts, the largest number of sport media presenters and currently manages over 3,000 individual global sporting events.
TLA will broaden QMS’ offerings both domestically and internationally and will provide greater exposure to sports such as AFL, and increased client activation and fan engagement capabilities.
TLA and Stride will utilise QMS Media’s print capabilities, OOH advertising, activation rights, and mobile assets to support events and client activation.
Craig Kelly, CEO of TLA, said: “We are thrilled to become a part of the QMS group, a business that shares our passion for sport and has a vision for a global sports platform to capitalise on the continued growth of the sector.
“Our new combined offering will make it easier for clients to access the highly engaged sporting fan like never before.”