Outdoor giant oOh!media is charging forward on its acquisition path with the takeover of digital display outfit Executive Channel Network, shortly after announcing a trading halt on the ASX.

The $68m deal is set to free up a significant volume of CBD and carpark screens for oOh!, pushing the out-of-home group into the high-valued office-space market.

Executive Channel Network (ECN) currently holds some 394 digital screens across Australia, and according to oOh! the acquisition will unlock a combined network of more than 3500 displays, reaching an audience of 1.8 million every week.

The acquisition will be acquired through oOh!’s wholly owned subsidiary Inlink Group, and ECN is forecasted to contribute some $8m of EBITA to the outdoor giant in 2017.

[Related: oOh! in mass print to digital transformation] 

“Combining ECN with oOh!’s existing product offering represents a valuable opportunity to leverage the strengths of the respective businesses and realise significant cost synergies,” says oOh! chief executive Brendon Cook.

“oOh!’s acquisition further enhances our position as Australia’s largest reaching digital sign network and consolidates our number one position in the CBD office segment. It is in line with oOh!’s diversified portfolio of digital and classic screens.”

Shortly before revealing its latest acquisition, oOh! then announced it would shift into a trading halt.

The halt is slated to allow oOh! to undertake a fully underwritten placement to eligible investors, in order to raise $60m to partially fund the ECN acquisition.

Normal trading of oOh! shares is expected to recommence tomorrow, and 12.6 million new shares are set to be allotted on October 17.

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