oOh!media will cease using the Adshel brand three months after the acquisition has been completed.
The stipulation was somewhat buried in this morning’s formal ASX release in relation to the acquisition.
oOh!media put in a $570 million bid for the Here There & Everywhere-owned (HT&E) media company late Friday night, with the acquisition being approved the following night.
Commenting on the move, oOh!media CEO Brendon Cook said, “oOh!media has a history of developing a diverse product portfolio to offer advertisers a range of audiences.
“Adshel is complementary to our existing portfolio and we are excited to be entering the new segments of the street furniture and rail.
“The digitisation opportunity in the Adshel business is expected to provide a significant avenue for further growth beyond what has been achieved to date,
“We are confident the oOh! shareholders will enjoy the benefit of cost synergies arising from the acquisition.”
The statement also added the acquisition’s cost synergies “are expected to predominantly comprise savings from leveraging combined infrastructure with duplicated resource rationalisation and reducing outsourcing costs.”
oOh!media will be acquiring more than 21,000 poster faces and 800 screens across Adshel’s Australian-New Zealand network.
In March, Adshel extended its Sydney Trains contract, which was due to expire at the end of 2018, for multiple years.
The contract covers premium and metropolitan concourse and platform assets across Sydney’s rail network, which includes 186 digital screens.