Target Company Overview

i-media is a rapidly expanding Digital Out of Home (DOOH) media owner, recognized for its exclusive advertising rights across the UK's Motorway Service Areas (MSAs). With a strong foothold, i-media has built the largest network of full motion large-format digital screens at MSAs through strategic partnerships with key operators such as Moto, Welcome Break, Roadchef, and Extra. With a presence at 130 roadside locations, the company effectively reaches an average of 6.3 million weekly visitors and over 31 million unique visitors annually.

The company’s sophisticated closed-loop network employs data analytics, including Automated Number Plate Recognition (ANPR) technology, to enhance audience targeting. This allows the delivery of relevant advertising tailored to the characteristics of vehicles at MSAs, providing advertisers like Disney+, McDonald's, and the VW group with a measurable return on investment through dynamic, contextual ads.

Industry Overview in the UK

The UK Out of Home (OOH) advertising market was valued at £1.3 billion in 2023, representing a significant sector within the advertising landscape. OOH advertising is known for its powerful broadcast capabilities, reaching approximately 98% of the population each week. This broad exposure positions OOH as a preferred medium for brands aiming to engage diverse audiences in various settings.

Furthermore, the advent of digital technology has transformed the OOH landscape, enabling real-time data integration and programmatic buying, which are crucial for maximizing advertising efficiency. In particular, digital screens are becoming increasingly prevalent at high-traffic locations, allowing for targeted messaging based on time, location, and audience demographics.

As the demand for innovative advertising solutions grows, the DOOH sector promises significant opportunities for companies that leverage data analytics and cutting-edge technology. This shift opens the door for a more interactive advertising experience, appealing to the habits of modern consumers who are often on-the-go.

In this evolving environment, advertisers are prioritizing agility and effectiveness in their campaigns, which further amplifies the relevance of companies like i-media that excel in delivering impactful messaging within high-visibility areas.

Rationale Behind the Deal

Mayfair Equity Partners has chosen to invest in i-media to accelerate its growth trajectory by expanding its network of digital screens and enhancing its data capabilities. This investment aligns with Mayfair's strategy to leverage cutting-edge technologies in the advertising space, particularly focusing on the rapidly expanding opportunities in programmatic DOOH advertising.

The backing from Mayfair is expected to enhance i-media's capabilities, positioning the company to capitalize on the increasing demand for targeted and dynamic advertising solutions in the UK market.

Investor Information

Mayfair Equity Partners is a specialist digital investor, managing over £2 billion in assets. With a commitment to supporting entrepreneurial ventures, Mayfair focuses on dynamic partnerships with founders and management teams to help realize their growth ambitions. The firm has cultivated a successful record of backing high-growth, sector-defining companies such as Ovo, LoopMe, and Talon Outdoor, demonstrating its expertise in the digital investment arena.

Mayfair's investment model emphasizes Active Partnership, incorporating a dedicated team of functional specialists who assist portfolio companies in optimization and scaling. This methodical approach underscores their commitment to unlocking the full potential of their investments.

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The involvement of Mayfair Equity Partners in the management buy-out of i-media appears to be a strategic move that could yield substantial benefits for both parties. Mayfair's experience in the digital advertising sector and its established track record of fostering growth in portfolio companies provide a strong foundation for i-media's advancement in the competitive DOOH landscape.

i-media, under the stewardship of CEO Jonathan Lewis, has demonstrated impressive growth, achieving a fivefold increase in revenue over the past three years. This growth trajectory, coupled with Mayfair's financial backing and industry expertise, positions i-media favorably to expand its market share and innovate its service offerings further.

Moreover, the UK’s OOH advertising market is on a robust growth path, driven by increasing demand for digital media solutions and a shift towards more data-driven advertising strategies. i-media’s innovative approach and use of technology substantiate its potential as a compelling player within this space.

In summary, this deal encapsulates a promising venture for Mayfair Equity Partners and i-media, suggesting that the partnership is likely to create significant value in the evolving OOH advertising sector.

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