Multireklam buys Efect Media

Efect Media, the third-largest player on the outdoor advertising market, estimated at 25 million euros in 2005, was acquired by Multireklam, the Hungarian market leader. Efect Media had a turnover of 2.5 million euros last year, equalling a market share of 10%. Euromedia ranks first, controlling slightly more than 50% of the market. The second-largest player is News Outdoor with a market share of 17%. The value of the transaction was not disclosed. According to market sources, the deal ranges between 5 and 10 million euros. Consultancy for the sellers, a group of private individuals, was coordinated by Raiffeisen Investment, the M&A division of Raiffeisen Group, whereas legal assistance was provided by the local law firm Radu, Taracila, Paduraru, Retevoescu SCA (RTPR) on Multireklam’s side. The Romanian outdoor market has seen a sustained growth trend, as has the advertising market in general. The market is expected to be worth 30 million euros in 2006. The Hungarian outdoor market exceeded 60 million euros in 2005, out of which Multireklam controls over 30%. The acquisition of Efect Media by Multireklam is part of the company’s strategy to become a regional player. The goal of Efect Media is to consolidate and to strengthen its position mainly through organic growth, but also via further acquisitions of local players.