SEG expects the deal to lift EPS by 59% pre-synergies, create a trans-Tasman audio platform with 5m weekly listeners, and target completion by Oct. 1.
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Sports Entertainment Group (ASX: SEG) has agreed to buy New Zealand audio business MediaWorks for an enterprise value of NZ$130 million, about A$107.4 million, on a cash and debt-free basis. The deal is expected to lift SEG's earnings per share by 59% before synergies, the company said.
MediaWorks generated A$131.2 million of revenue and A$18.1 million of EBITDA in the 12 months to June 30, 2026. Combined pro forma EBITDA would have been about A$36.1 million before synergies and A$41.1 million after them, based on the same period. The purchase price represents about 5.1 times MediaWorks' 2026 calendar-year budgeted EBITDA of NZ$25.4 million, falling to about 4.2 times after identified synergies of roughly A$5 million a year.
“The acquisition of MediaWorks is a transformational step for SEG that gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital, and entertainment capability across the Tasman,” chief executive officer Craig Hutchison said.
The combined group would reach more than 5 million weekly listeners across Australia and New Zealand. MediaWorks holds about 59% audience share among New Zealand listeners aged 25 to 54. Its rova platform attracts more than 540,000 monthly active users. MediaWorks' existing chief executive officer Wendy Palmer and her management team are expected to continue leading the New Zealand business, Hutchison added.
Completion is targeted for October 1, 2026, subject to conditions including New Zealand Overseas Investment Office approval. SEG will fund the purchase through existing cash, a new A$87.6 million senior debt facility from Commonwealth Bank of Australia (ASX: CBA), and an equity raising. The equity component includes a placement targeting up to about A$11.7 million through 42 million new shares at A$0.28 each, an 8.2% discount to SEG's last traded price and a 14.6% discount to its 15-day volume-weighted average price. A share purchase plan of up to A$2 million will offer eligible shareholders the same price.
Leverage is expected to be about 1.9 times pro forma EBITDA at completion including synergies. SEG outlined a path to roughly 1.2 times within two years through free cash flow, available New Zealand tax losses, and synergy delivery. The company has terminated its on-market share buy-back program with immediate effect.
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