Vinyl Group has announced plans to acquire Concrete Playground, a digital city guide platform covering events in Sydney, Melbourne, Brisbane, Auckland, and Wellington, in a deal valued at $5 million.

The acquisition terms include:

• $3.5 million in cash payment
• $1.5 million in Vinyl Group shares (12,676,413 shares at $0.11833 per share)
• 12-month escrow period for issued shares
• $300,000 held in escrow for potential claims

Key Business Impact:

• Concrete Playground's current annual revenue: $4 million
• Expected pro-forma EBITDA: $1.5 million
• Integration expected to accelerate Vinyl Group's path to positive cash flow by 6 months

Leadership Changes:

• Concrete Playground Founder & CEO Rich Fogarty will depart after completion
• Fogarty will assist with transition and integration

Completion Details:

• Expected by February 28, 2025
• Subject to standard conditions including:
  • Share Sale Agreement execution
  • Due Diligence completion
  • Shareholder, ASX, and ASIC approvals
  • No material adverse changes

The acquisition aligns with Vinyl Group's media strategy, complementing their existing agency network while serving different clients and briefs. This strategic move is expected to enhance operational efficiencies and strengthen Vinyl Group's market position in the digital media landscape.

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