Octopus Private Equity has invested in T4 Media, a London-based media contracting company that markets advertising space on ticket barrier equipment in railway stations and car park barrie
Octopus Private Equity has invested in T4 Media, a London-based media contracting company that markets advertising space on ticket barrier equipment in railway stations and car park barriers throughout the UK and Ireland.
According to Octopus, advertisements placed on ticket machines and barriers enjoy various unique benefits, notably that the equipment on which the advertisements are placed literally stop target audiences in their tracks while they physically interact it.
The private equity firm says that uniquely for out of home media formats, viewership is also completely accountable as it is independently audited by the number of tickets inserted into the ticket readers. T4 enjoys a strong level of repeat business, and clients value the high levels of recognition gained through these advertising media.
The investment represents an important stage in T4 Media’s development following a rapid growth in client base and revenue. Octopus says it has come in as a partner to finance growth and to assist with the strategic development of the business, including anticipated bolt on acquisitions in the future.
‘We are delighted to have secured this investment, which will enable us to accelerate the pace of growth at T4,’ says chief executive Marco Pieters. ‘We intend to create a leading transport media business, and this funding will support that objective. We have been impressed by Octopus’s credentials in the media sector, and the value and experience that they bring to the business.’
Alistair Brew led the investment for Octopus, supported by Paddy Woods Ballard and Christopher Allner, who will join the T4 board. Paul Daniels will remain the firm’s non-executive chairman.
Ballard, who will become an observer to the T4 board, says: ‘The T4 team has built a market-leading transport media business. We anticipate making further add on acquisitions to T4 in due course, and believe T4 to be an excellent platform from which to make these acquisitions.’
T4 received corporate finance advice from Vantis and legal advice from Thomas Eggar, while Chantrey Vellacott provided tax advice. Octopus’s legal advisers were CMS Cameron McKenna and Wragge & Co, while financial due diligence was completed by Vantis and commercial due diligence was carried out by Latitude. HSBC’s south-east corporate banking team is providing banking facilities.
Octopus is a leading investor in fast growing small and medium-sized UK companies with more than GBP360m under management. The firm specialises in providing equity finance of between GBP2m and GBP8m for management buy-outs, buy-ins and development capital for in transactions with an enterprise value of typically up to GBP25m. Octopus has been an active investor in the media sector with investments including Gyro, Reading Room, Luther Pendragon, Promotion Space and npi.
