Leading empowerment media group, Kagiso Media, and Lagardère Active Radio International (LARI), a division of French holding company Lagardère, have acquired Acceleration Media from its former owner, Acceleration, for an undisclosed amount.
The deal signals Kagiso Media's intention to diversify into digital media and become a significant player in South Africa's online media and advertising environment.
Acceleration Media is a leading media strategy, planning and buying company that helps leading South African agencies and marketers maximise their use of online media. Acceleration Media will operate as a separate and autonomous company within the Kagiso Media group.
The Acceleration group, meanwhile, will further intensify its focus on growing its international digital marketing technology services and solutions business.
Says Murphy Morobe, CEO of Kagiso Media: “Kagiso Media has been exploring opportunities in South Africa's fast-growing digital environment as part of its growth strategy. The acquisition of Acceleration Media gives us a foothold into the online media environment. It signals the beginning of the actualisation of our strategy to position Kagiso Media in the 'new media' space to complement our strong broadcast assets.
“Acceleration Media is a leader in the local online media strategy, planning and buying environment and has a track record of profitable growth behind it. It also has a strong base of skills and customers that we can build on in the years to come.”
“The sale of Acceleration Media makes business sense because Acceleration Media and Acceleration are moving in different strategic directions. After entering discussions with a number of suitors for the company, we are pleased to have found a new owner that is an excellent strategic fit for Acceleration Media in the form of the Kagiso Media group and LARI,” says Jacques van Niekerk, CEO of the Acceleration.
“This deal will allow both Acceleration Media and Acceleration to maximise their growth potential in the years to come. Going forward, Acceleration plans to enhance its core business in the marketing technology services and solutions market,” says Van Niekerk.