- Aussie digital media specialist QMS Sport will be expanding its tool set of operations after announcing the purchase of two companies to assist global marketing across AFL, Cricket, Netball, and more
- The companies, Australian-run TLA Worldwide and its UK division TLA-ESP, will be purchased in a packaged deal worth $32.7 million
- QMS will be funding the deal through a mixture of cash and $12 million in company shares to shareholders
- The company believes the added businesses under its banner will bring over $6 million in profits during the rest of 2019 alone
QMS Media subsidiary QMS Sport has cleaned up competitors this morning, announcing the purchase of two of its rivals in a bundled deal.
TLA Worldwide, an Australian run company, and TLA-ESP, its UK division, will both be purchased by QMS. The deal will cost $32.7 million in acquiring full working interest for both of the companies. The two companies are represented by owner Stride Sports Management.
Stride, or TLA, is a sports media marketing group representing players across AFL, Cricket, Netball and Olympic sports in Australia and the UK.
“The TLA and Stride acquisitions represent the next step in the development of QMS Sport as a global integrated sports platform,” QMS CEO Barclay Nettlefold said.
“These acquisitions provide QMS Sport with an enhanced service offering that together creates a unique vertically integrated sports advertising platform,” he said.
TLA’s strengths currently lie in public relations, content creation, social media consultancy, and graphic design.
This diverse toolset of strengths will add to QMS’ existing sports portfolio of bringing multi medium experiences to sports fans.
Today, QMS runs digital sports signance, in-stadium screens networks, mobile phone engagement, mobile LED screens, and several large format screens across AFL, Rugby, Netball, Soccer, NRL and more.
Barclay continued to outline TLA as an agency integral to building QMS’ diverse portfolio of work and tools.
“Our vision is to develop QMS Sport as a global integrated sports platform with digital sports technology, infrastructure, media rights, talent management and merchandise under one major sports offering, providing advertisers, sponsors and brands with a unique and powerful platform to engage with this highly valued sports audience,” he said.
For this ongoing calendar year, QMS believes the acquisitions will bring roughly $6 million in added profits.
QMS said the official acquisition is to execute within 30 days from now.
“QMS Sport with its existing brands including QMS Sport, TGI, StellaVista, Sportsmate, FanTribe, and now TLA and Stride is very well positioned to play a leadership role,” Barclay concluded.
QMS will be funding the twin-business purchase through a mixture of cash and a placement of $12 million in company shares to investors. The company said balancing the cash portion of the purchase will be funded during a debt facility, expected to be repaid during 2020.
TLA CEO Craig Kelly added his statements to QMS’ media release this morning, echoing Barclay’s passion for business and sports.
“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,” Craig said.
“Our new combined offering will make it easier for clients to access the highly engaged sporting fan like never before,” he said.
Shareholders have reacted to QMS’ news positively this morning, with shares reaching a 3.3 per cent increase — trading at 94 cents apiece.
The company’s market cap is currently valued for $297.2 million.