JCDecaux will acquire Australian out-of-home media company APN Outdoor for $1.119bn following a wave of consolidation in the Australian market.
The international outdoor giant has agreed the deal after its initial $1.1bn bid last week was rejected.
The deal will provide JCDecaux with APN’s large format billboards as well as outdoor assets in the transit, rail and airport markets. It will also enable the French-based brand to enter New Zealand, via the company’s trans-tasman assets.
Jean-François Decaux, co-chief executive officer of JCDecaux, said: “This acquisition is a significant milestone in JCDecaux’s history in Australia, which is the 7th largest advertising market worldwide, where we have been growing organically since 2000.
“APN Outdoor is very complementary to our existing street furniture assets and through this acquisition, JCDecaux will be attractively positioned to provide a compelling proposition to compete more effectively in the Australian media market where Out of Home accounts for 6% of advertising spend, of which almost 50% is digital. Finally, we are delighted to enter New Zealand, a fast-growing market.”
The acquisition comes hot on the heels of a major acquisition by APN Outdoor’s rival company Ooh Media, which outbid APN to acquire street furniture company AdShel.
Both deals are now subject to approval by the Australian Competition and Consumer Commission (ACCC).