MELBOURNE: Sports Entertainment Group Limited announced Wednesday it has entered into a binding agreement to acquire MediaWorks Topco Limited, New Zealand’s largest audio business, for an enterprise value of NZ$130 million (approximately A$107.4 million), a statement said.
The acquisition creates a trans-Tasman audio, digital and entertainment group with combined weekly audiences exceeding 5 million listeners across Australia and New Zealand, according to the company.
MediaWorks holds approximately 59% audience share in the 25-54 demographic in New Zealand and operates the rova digital audio platform, which has over 540,000 monthly active users.
The acquisition is expected to be materially accretive to SEG’s earnings per share, with a 59% increase on a pre-synergies basis. The company has identified approximately A$5 million in annual synergies.
“The acquisition of MediaWorks is a transformational step for SEG,” said Craig Hutchison, SEG chief executive officer. “It gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital and entertainment capability across the Tasman.”
The purchase price represents a multiple of approximately 5.1 times MediaWorks’ CY26 budgeted EBITDA of NZ$25.4 million, reducing to 4.2 times post-synergies.
MediaWorks’ existing management team, led by CEO Wendy Palmer, is expected to continue leading the New Zealand business following completion.
The acquisition will be funded through a combination of existing cash reserves and a new $87.6 million senior debt facility from the Commonwealth Bank of Australia.
SEG has launched a placement to raise up to approximately $11.7 million from sophisticated and professional investors and intends to undertake a subsequent Share Purchase Plan to raise up to $2 million from eligible shareholders.
The company reported record FY26 results with unaudited revenue of $152.8 million, up 38% from the previous year, normalized EBITDA of $18 million, up 71%, and normalized NPAT of $6.6 million.
Completion of the acquisition is targeted for Oct. 1, 2026, subject to customary conditions including New Zealand Overseas Investment Office approval.
SEG has terminated its current on-market share buy-back program, which had been in operation since March 24, 2026, with immediate effect.
The company finished FY26 with a strong balance sheet, with cash balance growing to $24 million at year-end and debt of $10 million.
