Digital media company Vinyl Group (ASX: VNL) has signed an agreement to acquire urban culture brand Time Out Australia, marking its second acquisition in as many days as the company pushes to build a dominant Australian digital media network.
The deal comes just a day after Vinyl struck an agreement to acquire Pedestrian Group from Nine Digital, also for nominal consideration, in a move that lifts the combined group's de-duplicated online audience reach to about 55 per cent of Australians.
Alongside the Time Out acquisition, which the company says was also struck at a nominal sum, Vinyl has completed a $2.4 million placement to support integration costs across both acquisitions.
The placement, priced at 5.4c per share - a 10 per cent discount to the last closing price on 5 June - comprises the issue of 44.44 million new shares to sophisticated and strategic investors led by a cornerstone top 10 shareholder.
Time Out Australia operates as a franchise of the global Time Out brand, publishing city guides and lifestyle content across Sydney, Melbourne and other Australian markets.
The business is described as currently profitable and earnings accretive in FY27, though specific revenue and EBITDA figures for the Australian operation have not been disclosed.
Under the terms of the deal, Vinyl will enter into a franchise agreement with UK parent company Time Out Group plc, securing the rights to operate the Time Out brand in Australia.
“This is a highly strategic acquisition that brings one of the world’s most iconic culture brands into the Vinyl Media portfolio," says Vinyl Group CEO Josh Simons.
"Time Out strengthens our position at the intersection of content and real-world experiences, and expands our reach into high-value audiences across Australia.
"It is another important step in building a scaled, premium publishing platform.”
Time Out Media CEO Rob Biagioni describes Vinyl as a strategic fit for the Australian business.
"Australia is an important territory for Time Out, and we're proud of the business and audience we have built over many years," says Biagioni.
"Vinyl has a strong track record of growing premium media brands and connecting audiences with real-world experiences, making them the ideal partner for Time Out in Australia.
"We are excited to work together to continue growing the Time Out brand and helping Australians discover the very best of their cities."
Vinyl Group says Time Out Australia complements its existing portfolio, including Concrete Playground, BuzzFeed, Rolling Stone AU/NZ and Mediaweek, and enhances its ability "to connect audiences with real-world experiences".
The licence includes operation of Time Out branded websites across Australian cities, social media platforms and events and experiential activations.
Completion is expected on 24 June, subject to a 14-day cooling-off period.
The Pedestrian Group acquisition, announced yesterday, is set to complete on 15 June. Once valued at $100 million in 2018 when Nine Entertainment took full control, the youth-focused digital publisher is expected to contribute $600,000 to $800,000 in pro forma EBITDA to the combined group.
The back-to-back acquisitions underpin a significant uplift in Vinyl's financial outlook.
The company is forecasting consolidated FY27 revenue of $37 million to $40 million, representing about 100 per cent revenue growth on the current year, alongside its first EBITDA-positive year at $3.5 million.
Vinyl Group's media division already operates a portfolio of music and entertainment-focused digital brands.
The addition of Pedestrian Group and Time Out Australia transforms the business into a broader lifestyle and culture media network with national scale.
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