Vinyl Group buys Concrete Playground for $5m
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The news: ASX-listed music company Vinyl Group has agreed to acquire digital city guide Concrete Playground for $5 million.
The numbers: The deal will see Vinyl acquire 100% of the issued capital in Concrete Playground in exchange for $3.5 million in cash and $1.5 million in shares.
Concrete Playground's unaudited revenue over the past 12 months amounted to over $4 million, which would contribute a pro-forma EBITDA of around $1.5 million at completion.
Vinyl said Concrete Playground will be integrated within its existing media division, with expectations that the move will deliver operational efficiencies and accelerate the company's timeline on achieving group-wide positive cash flow within six months.
The context: The acquisition will see Concrete Playground's founder and CEO Rich Fogarty leave the business to pursue new opportunities. He will work with the company between now and completion of the deal to ensure the staff and business are integrated smoothly.
Vinyl expects to complete the acquisition no later than 28 February 2025.
The group's existing media arm includes Mediaweek and The Brag Media, publisher of Rolling Stone Australia and New Zealand, Variety Australia, TheBrag.com, among others.
Concrete Playground, which launched in 2009, curates events, experiences and trends in Sydney, Melbourne, Brisbane, Auckland and Wellington.
What they said: "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," Vinyl CEO Josh Simons said.
Fogarty said: "As the business transitions to new ownership under Vinyl Group, I'm confident their vision and resources will elevate Concrete Playground to new heights, inspiring even more people to discover the very best their cities have to offer".
The source: ASX announcement
