SYDNEY: Motio Limited (ASX: MXO) announced on February 20, 2025, that it has entered into a binding agreement to sell its Spawtz software business for $1.35 million in cash.
The sale allows Motio to maintain long-term, fee-free access to key media-related services while focusing on its core media business and reducing debt.
The buyer is a consortium of Motio staff members currently managing the Spawtz software business. As part of the agreement, Motio will retain a long-term, fee-free license to Spawtz, ensuring continued access to audience data, uninterrupted XML feeds for digital displays, and the ability to sell online advertising inventory and Electronic Direct Mail to advertisers.
This arrangement supports the ongoing development of Motio’s motio.play media channel, which operates in 80 sports centers across Australia.
Motio CEO Adam Cadwallader emphasized that the sale marks a significant step in the company’s evolution as a unique media business. “Motio is more than out-of-home advertising, digital, and video — it’s a Dynamic Media Interface that combines the best aspects of all three into a single platform designed to influence, engage, and connect in ways no one else can,” Cadwallader said.
Despite the sale, Motio affirmed its earnings guidance of $1.2 million-plus EBITDA for fiscal year 2025, citing the strong performance of its core media assets. The company expects the transaction to be completed by March 31, 2025.
The sale proceeds will strengthen Motio’s balance sheet, allowing the company to pursue organic and acquisitive growth opportunities in the media space. Motio Chair Jason Byrne noted that the sale enables the management team to focus entirely on the core business, which is experiencing continued growth and operating leverage.
Under the agreement, five team members, including Michael Johnstone, will transition to the new company. Johnstone has also agreed to a voluntary escrow of his existing Motio shares for six months post-completion. The transaction includes subsidiaries Liquid Thinking Ltd (UK) and Motio NZ Tapui Ltd.
Motio’s network includes more than 1,500 state-of-the-art digital displays across over 1,000 high-value locations, offering brands a unique platform to connect with audiences in environments such as cafés, medical centers, and sports venues.