MediaWorks & QMS New Zealand merge to offer TV, radio & OOH

• The proposed merger would see QMS merge its NZ out-of-home, digital media and production businesses

MediaWorks and QMS Media are planning to merge QMS Media’s New Zealand out-of-home, production and digital media business (QMS NZ) with MediaWorks New Zealand radio, TV and digital business.

The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to complete in the second quarter of CY 2019.

The proposed merger would see QMS merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return it will receive a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital retaining a majority.

The proposed merger of QMS NZ and MediaWorks would be a first in the New Zealand market to harness the combined power of out-of-home, radio, TV and digital.

Jack Matthews, MediaWorks chairman, said:

“Under Michael Anderson’s leadership MediaWorks has made great strides over the past two years. With this proposed merger, MediaWorks will be able to further enhance its ability to deliver high quality local content and more effective advertising solutions to our customers. It will represent a significant investment in and commitment to New Zealand.”

Wayne Stevenson, QMS chairman, said:

“New Zealand is important to our business and we are excited about the potential opportunity to create a leading multimedia group that will transform the New Zealand advertising industry.”

Michael Anderson, who will remain CEO of MediaWorks, said:

“After discussions with QMS, we are confident that this proposed partnership would create an unrivalled multiplatform media company in New Zealand giving us unprecedented capacity to integrate clients across four platforms – radio, TV, out-of-home and digital.

“This will present an outstanding opportunity to build our market presence with product and audience breadth in an environment where we are able to grow and enable our continued investment in local content across television, radio and digital.”

Proposed Transaction Highlights

• QMS proposes to merge its NZ out-of-home, digital media and production businesses into MediaWorks and receive in return a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital retaining a majority.
• Transformational multimedia provider across four platforms, delivering the combined power of out-of-home, radio, TV and digital, with a strong localised presence and experienced leadership.
• The proposed combined sales network will maximise revenue opportunities and deliver strong cash flow to the group.
• The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to complete in the second quarter of CY 2019.

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