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Highlights:
- Acquisition Agreement: Vinyl Group Ltd (ASX:VNL) has agreed to acquire digital city guide Concrete Playground for $5 million in cash and shares.
- Revenue and Profitability: Concrete Playground's revenue exceeded $4 million in the past year, expected to contribute a pro-forma EBITDA of $1.5 million post-acquisition.
- Strategic Fit: The acquisition complements Vinyl's existing business, Brag Media, and aims to diversify and expand its customer base.
Vinyl Group Ltd (ASX:VNL) has entered into an agreement to acquire Concrete Playground, a digital city guide, in a deal valued at $5 million. The acquisition will be paid through a combination of $3.5 million in cash and $1.5 million in shares. This strategic move aims to leverage Concrete Playground’s loyal customer base and solid revenue stream to enhance Vinyl's market position.
Concrete Playground provides users with information on events, experiences, and trends in cities such as Sydney, Melbourne, Brisbane, Auckland, and Wellington. Vinyl Group sees this acquisition as a natural fit with its youth-focused publisher, Brag Media, while also bringing in a more diverse audience.
One of the key attractions of Concrete Playground is its strong financial performance. Over the past 12 months, the platform generated more than $4 million in revenue, which is expected to contribute a pro-forma EBITDA of $1.5 million after the acquisition. Vinyl Group will take on 100% of Concrete Playground’s issued capital, integrating it fully into its operations.
As part of the acquisition, Concrete Playground CEO Rich Fogarty will step down to pursue other opportunities but will remain in his role until the deal is finalized to ensure a smooth transition. Vinyl Group CEO Josh Simons expressed enthusiasm about the acquisition, highlighting the trusted platform Concrete Playground has built and its alignment with Vinyl's broader media strategy.
Simons stated, “We are looking forward to working with Rich and the Concrete Playground team to complete this acquisition in early 2025. They’ve built a trusted platform that audiences genuinely love, and their approach to storytelling will be a natural fit with our broader media strategy. Operationally, this acquisition will be significant for Vinyl Group — it would not only elevate our capabilities but also fast-track our path to sustained profitability, allowing us to deliver even greater value to our shareholders and partners.”
The acquisition of Concrete Playground is expected to significantly enhance Vinyl Group's capabilities and accelerate its journey towards sustained profitability. By integrating Concrete Playground’s platform, Vinyl aims to deliver greater value to its shareholders and partners, while expanding its reach and influence in the digital media landscape.
