Nine Entertainment Co. (NEC) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of QMS Outdoor, a leading digital outdoor media platform, accelerates digital transformation and revenue diversification, shifting the portfolio to high-growth, digital assets.

• Sale of radio assets and conversion/divestment of regional TV station NBN streamline operations and reinforce metro and digital focus.

• Growth assets are projected to contribute over 60% of group revenue by FY27, up from 45% in FY25.

• Enhanced cross-platform advertising proposition leverages premium content, digital outdoor reach, and incremental growth opportunities.

Financial terms and conditions

• QMS Media acquired for $850m enterprise value (cash and debt free), funded from existing debt facilities and cash reserves, with a cash tax loss benefit of ~$32m.

• Sale of radio assets for $56m and NBN for $14.8m–$15m, with total cash proceeds of $71m and significant cash tax loss benefits ($51m and $95m, respectively).

• Net outlay, including tax loss benefits, is approximately $601m, resulting in pro forma EBITDA contribution of $113m and a 5.3x EV/EBITDA multiple.

• Combined FY26 pro forma EPS accretion in the low single digits (pre-synergies) and low double digits (including synergies).

• Positive EBITDA impact of ~$80m on a pre-AASB16 basis in FY26.

Synergies and expected cost savings

• Annual pre-tax cost synergies of ~$20m expected by year three (FY29), mainly from back-office consolidation, procurement, tech, and marketing efficiencies.

• Additional revenue opportunities through bundling outdoor inventory with video and publishing assets, and enhanced advertiser targeting.