The Convey acquisition, which includes an initial cash payment of US$33 million along with potential further cash payments and Class A common shares, expands XFMedia’s reach with an additional four cities in the high-income Guangdong province, along with Hong Kong, Macau and Tianjin.
The deal includes access to Convey’s 3,000 outdoor sites — a combination of traditional outdoor billboards and LED and LCD boards — which will add to XFMedia’s current portfolio of assets in Beijing and Shanghai.
“Convey’s outdoor media assets, which are strategically located at high-traffic areas, border-port gateways and central business districts, will enhance our ability to reach China’s high net-worth demographic, given Guangdong province is the wealthiest in China,” said Joy Tsang, director of corporate communications, XFMedia.
“With the technology that Convey has in producing mobile inflatable billboards and large-scale visual displays with laser-light projection, we can help clients to create even more impressive ads and achieve higher branding effects. Hong Kong and Southern China have become key areas in which companies like Sinopec and China Unicom can promote their brands and products.”
Convey chairman ST Mak said the company would continue to expand its operations across key cities in China, adding that the deal would provide financial backing. He added that he, and other senior key executives, had signed five-year contracts to ensure a smooth transition.
Last year, Guangdong ranked number one in China in terms of GDP, and accounted for one-eighth of the country’s total.
The agreement with House will give XFMedia’s clients access to a portal which garners 30,000 page views daily.
