Multiply Group has bought a 55 per cent stake in outdoor advertising company Media 247 for Dh225 million ($61.2 million) as part of efforts to expand its portfolio.
The Abu Dhabi-based technology-focused investment holding company first announced its intention to invest Dh184 million for the stake in April.
However, the acquisition price has been “adjusted as a result of the company’s strong financial performance during the first half of 2023, where it overachieved its revenue and profitability targets by about 10 per cent and 37 per cent respectively”, Multiply said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Media 247 has a portfolio of 45 exclusive outdoor premium hoardings, unipoles and 3D structures in a number of locations in Dubai.
It offers services including media management, printing and transit media solutions across Dubai's taxi fleet.
“Our investment in Media 247 underscores our strategic commitment to grow our verticals through the addition of high-value assets that yield sustainable recurring returns,” said Samia Bouazza, Multiply's chief executive and managing director.
“The global media and communications industry, valued at $2 trillion, is undergoing a seismic shift due to rapid digital transformation, immediate content dissemination, and heightened user engagement, presenting unprecedented growth avenues.”
The latest deal comes as Multiply, a subsidiary of Abu Dhabi's International Holding Company, continues to expand its portfolio.
The company has been investing across its two units: Multiply and Multiply+.
Multiply operates and invests in four areas including mobility, energy and utilities, media and communications, and beauty and wellness. Multiply+, its sector-agnostic investment arm, seeks to target double-digit returns across several asset classes.
Last month, it bought a stake in LVL Technology Holding for an undisclosed amount.
It has also invested in businesses such as Emirates Driving Company, Viola Communications, Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.
In July, it bought a minority stake in Breakwater Energy for Dh367 million.
“The acquisition of Media 247 aligns with Multiply Group’s ‘buy and build’ strategy, which focuses on acquiring profitable companies, fostering portfolio-wide synergies, driving bolt-on investments and enhancing scalability and margins,” the company said.
Multiply posted a 267 per cent rise in its annual net profit for the second quarter of this year, driven by the strong performance of its subsidiaries.
The net profit attributable to shareholders for the three-month period stood at Dh362 million.
The group remains “well on track” to double its net profit this year from companies where it has a controlling stake, its Ms Bouazza told The National in July.
