South African media group Primedia has acquired a 50% shareholding in Merchint — a company focused on developing proprietary software and hardware technology that can broadcast or narrowcast digital media into any environment where a consumer is at the point of making a purchase decision.
Merchint’s digital media network infrastructure provides a unique opportunity for Merchint to become the significant market leader in fully managed digital signage networks and the largest wireless in-store network in South Africa, Primedia said in a statement on Friday.
Merchint has been, up until now, a wholly owned subsidiary of Barrows Design and Manufacturing, the market leader in retail media in the South African market.
Primedia CEO William Kirsh said: “We are investing in a company that has developed world-class technology over the last three years.
“Following very positive trends internationally, this new media type is enabling advertisers to very effectively target consumers at the point of sale, which is where 70% of all purchase decisions are made. We will now also be able to leverage a number of our existing out-of-home distribution channels, providing greater effectiveness and flexibility to our customers.”
Primedia paid R25-million for its initial stake, with a further top-up payment of R75-million over the next 4 years, based on the future performance of the company, it said.
“On the basis that we make this full payment, the transaction will be very earnings enhancing to Primedia.” — I-Net Bridge