Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Tomizone's proposed acquisition has potential to expand beyond New Zealand

The media company, currently based in New Zealand, has the ability to expand its full suite of products into the Australian market.
Graphic of Tomizone's revenue model
The proposed acquisition is expected to generate revenues of less than $1 million for the 2019 financial year.

Tomizone Ltd (ASX:TOM) has entered a heads of agreement to acquire a New Zealand based digital signage and content media/marketing company.

The target company provides a complete marketing package including digital signage and advertising content to a number of niche markets.

Tomizone offers an extensive suite of managed services, encompassing wi-fi and analytics, business cloud applications, VoIP, data redundancy and business security.

Potential to expand beyond New Zealand

The media company has the ability to expand its full suite of products into the Australian market.

Tomizone’s strategy is to integrate products and services to a growing client base.

In keeping with this plan, the company will look to introduce the product offering to existing and new clients in Australia in the short term via its digital signage sales division.

Positive underlying earnings impact in 2019

The company under consideration is expected to generate revenues of less than $1 million for the 2019 financial year.

Management expects that it will have a small positive impact on underlying earnings and cash flow in that year.

However, additional substantial value will occur for Tomizone by offering this service to its customers and by consolidating this business into its digital signage division.

The business includes an existing base of installed digital signs and a customer base of advertisers.

Increase in installed screen base

The company under consideration has a scalable business model and an increase in the installed screen base will lead to large additional revenue streams for Tomizone.

Payment for the transaction will be share-based and it is expected to involve an initial payment at the time of settlement based only on the value of the assets. 

The transaction is subject to due diligence and any required shareholder or regulatory approvals.

It is anticipated that the transaction will settle within the current quarter as there are immediate opportunities that would add value to Tomizone in the short term.

View full TOM profile View Profile

Tomizone Ltd Timeline

Newswire
February 01 2015

Related Articles

picture of trading screens
November 30 2017
Tavistock’s optimism is based on the surge of money into its seven discretionary funds that trade under the Acumen brand.
Burning wood pellet
April 30 2018
The company said full-year revenue would be a third higher than previously forecast, with fuel demand likely to have risen steeply with the recent UK cold snaps
Digital marketing
May 03 2018
Lots of marketing groups have pursued a 'buy and build' strategy and have become cumbersome as a result; Be Heard puts the emphasis on maintaining agility

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use