QMS Sport to acquire TLA Australia and Stride and launch Capital Raise
QMS Media Limited (ASX: QMS) (QMS or the Company) has today announced its wholly owned subsidiary company, QMS Sport Holdings Limited (QMS Sport), has entered into agreements to acquire a 100% interest in the TLA Worldwide (Aust) Pty Ltd and TLA – ESP Limited (UK) (together, TLA) and, in turn, Stride Sports Management Holdings Pty Ltd (Stride) businesses.
Bringing together two complementary businesses, the agreement will enhance TLA’s capabilities and opportunities for talent, clients and staff within a broader-based sports media platform, expanding touchpoints across the wider sports industry.
The QMS Sport and TLA combined offerings are complementary to each other and will create a leading Sports focused business specialising in digital in-stadium advertising and content opportunities as well as talent management, events and merchandise.
“We are thrilled to become a part of the QMS group,” said TLA Worldwide CEO Craig Kelly.
“The QMS group is 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. Our new combined offering will make it easier for clients to access the highly engaged sporting fan like never before.”
“We will continue to look after our talent, our core sports and key clients with the same commitment and passion that we have always shown, and we will create and share in success as we all grow and maximise the opportunities in our markets.”
The TLA and Stride acquisitions will broaden the service offerings both domestically and internationally across QMS Sports’ global business footprint. Importantly, in Australia, they will provide greater exposure to sports such as AFL, and increased client activation and fan engagement capabilities. TLA and Stride will utilise QMS Media’s print capabilities, OOH advertising, activation rights, and mobile assets to support events and client activation, whilst QMS Sport will refer TLA’s merchandising capabilities and events activation/consultancy to its client base to provide a more holistic service and revenue flow.
QMS Media Group CEO and Managing Director, Barclay Nettlefold said, “The TLA and Stride acquisitions represent the next step in the development of QMS Sport as a global integrated sports platform.”
“These acquisitions provide QMS Sport with an enhanced service offering that together creates a unique vertically integrated sports advertising platform; leveraging the strength of their respective strategic relationships with both domestic and international clubs, agencies and rights holders to broaden client service offerings and grow collective revenue streams.”
Mr Nettlefold said: “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. The relationships TLA and Stride have with key sporting codes, clubs and talent will be beneficial in delivering new revenue streams both locally and internationally.”
“Sport remains one of the largest and highest growth segments of the market. Advertisers place a premium on the live nature of sports events, being one of the few remaining forms of entertainment that viewers feel compelled to watch in real-time.”
Mr Nettlefold said “Sport therefore has superior advertising appeal, but sports marketing remains a very fragmented market which provides the opportunity for significant consolidation benefits and synergies. New technology is also presenting unparalleled growth opportunities, and the performance to date of our existing QMS Sport business, including recently completed acquisitions, is delivering on that promise with its financial performance in the first half of CY2019 ahead of expectations.”
“Industry consolidation is required to build the optimum global platform across technology, infrastructure and digital media. Scale and a global platform provide access to significant cross-sell opportunities that leverage existing relationships with large global sporting bodies, clubs, agencies, brands and rights holders, as well as significant cost synergies. 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.”
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