Sports Entertainment Group Ltd (ASX:SEG) has agreed to acquire New Zealand audio business MediaWorks for NZ$130 million (A$107.4 million), in a transaction expected to materially lift earnings and create a trans-Tasman media group reaching more than five million listeners each week.
The acquisition is expected to be 59% accretive to SEG’s earnings per share before synergies, with around A$5 million in annual synergies identified.
SEG said the purchase represented an acquisition multiple of about 5.1 times MediaWorks’ budgeted calendar 2026 EBITDA of NZ$25.4 million, falling to 4.2 times after identified synergies.
On a pro forma basis, the combined businesses generated EBITDA of about A$36.1 million in the 12 months to June 30, 2026, before synergies, increasing to approximately A$41.1 million once the identified savings are included.
MediaWorks adds scale in New Zealand
MediaWorks is New Zealand’s leading audio business, with about 59% audience share among the 25–54 demographic and 2.4 million weekly listeners.
Its portfolio includes the rova digital audio platform, which has more than 540,000 monthly active users. SEG sees an opportunity to integrate rova with its existing SEN digital platform and grow the service toward 800,000 users by 2030.
The acquisition will also broaden SEG’s content mix beyond sports into music and entertainment, while providing a platform to introduce more of its sports, events and entertainment content to New Zealand audiences.
MediaWorks’ existing management team, headed by chief executive Wendy Palmer, is expected to remain in place following completion.
SEG chief executive Craig Hutchison described the deal as a “transformational step”, saying it would provide immediate market leadership in New Zealand and expand the company’s sport, digital and entertainment capabilities across the Tasman.
Funding combines debt and equity
SEG plans to fund the transaction using existing cash and a new A$87.6 million senior debt facility from Commonwealth Bank of Australia (ASX:CBA).
The company has also launched a placement to raise up to A$11.7 million at A$0.28 per share, with proceeds to be used to partially repay or reduce drawings under a bridging component of the debt facility. The placement price represents an 8.2% discount to SEG’s last traded price and a 14.6% discount to its 15-day volume-weighted average price.
A subsequent share purchase plan is targeting a further A$2 million, with eligible shareholders able to apply for up to A$30,000 of shares at the same A$0.28 issue price.
Leverage is expected to sit at about 1.9 times pro forma FY26 EBITDA following completion, including identified synergies, with SEG targeting a reduction to about 1.2 times within 2 years.
Record FY26 performance
The transaction comes as SEG reported unaudited FY26 revenue of A$152.8 million, up 38% from FY25, and normalised EBITDA of A$18 million, up 71%.
Normalised net profit after tax was A$6.6 million, while normalised earnings per share were 2.3 cents. SEG ended the financial year with A$24 million in cash and A$10 million in debt.
Next steps
SEG expects to announce the placement outcome on August 14, with its share purchase plan opening on August 21 and closing on September 11.
Completion of the MediaWorks acquisition is targeted for October 1, 2026, subject to customary conditions including approval under New Zealand’s Overseas Investment Act.
SEG has also terminated its on-market share buy-back program with immediate effect as a result of the acquisition and associated equity raising.
About Sports Entertainment Group
Sports Entertainment Group operates sports media, content, digital, events and entertainment businesses in Australia. The proposed MediaWorks acquisition would extend that platform into New Zealand and combine SEG’s Australian sports audio network with MediaWorks’ radio and digital assets, creating a group with more than 5 million weekly listeners across the 2 markets.