Point of care digital media company, Medical Channel has raised $25 million and acquired rival digital signage firm Community Network.
The combined business now offers advertisers an audience of 6.25 million viewers per month in more than 3200 health providers Australia wide. Average dwell time is 30 minutes.
“This deal is a watershed moment for Medical Channel, it firmly extends our lead in this space to more than 50 per cent of the addressable market,” Medical Channel CEO Nazar Musa said. “The combined business is immediately profitable through the ability to offer both local and national advertising campaigns.”
The raise was led by Sandbar Investments and investment house Wingate. Medical Channel operates and provides content for a network of digital display screens in health practices across Australia.
Advertising on Medical Channel can be targeted down to the exact demographics that frequent any health provider in the network. The company has over 7000 engaged advertisers.
In addition to advertising, Medical Channel can also provide targeted health advice and medical information to both doctors and patients. Medical Channel’s board now comprises Dr. Phillip Wing (Chairman), Sandbar’s Darren Smorgon, Wingate group’s David Jackson and digital media entrepreneur and investor Tony Faure.
CEO Nazar Musa added: “It’s an exciting time for Medical Channel. We have an effective, growing but well targeted out-of-home advertising solution. We’ve doubled our headcount, and recently moved into a new office. We’re now ready to tackle the next stage of our growth.”
David Jackson, Wingate Private Equity Director said: “The transaction is compelling with the business combination creating a clear market leader with a national presence. This presents a unique platform for advertisers to reach consumers in a targeted manner and measure returns. The growth opportunity is underpinned by a continued focus on innovation and exceptional service delivery for our customers and partners.”
Darren Smorgon, Managing Director of Sandbar Investments added: “It is exciting for Sandbar investments to be co-investing alongside Wingate and the existing Medical Channel team. A monthly audience of more than 6 million people is highly attractive to a wide range of local and national advertisers, in particular those targeting the $150 billion plus health industry.”