T-Mobile acquires Vistar to revolutionise DOOH sector

T-Mobile has announced its acquisition of Vistar Media, a move set to transform the digital-out-of-home (DOOH) advertising sector by merging Vistar's ad-tech platform with T-Mobile's customer insights and data.

T-Mobile's Advertising Solutions business will take control of all of Vistar's capabilities, including its marketplace and technology solutions designed for media campaign management across a global network of over 1.1 million digital screens. This network involves approximately 370 out-of-home media owners and serves more than 3,000 brand partners.

By amalgamating these resources, the acquisition is anticipated to innovate the DOOH industry. T-Mobile aims to enhance marketers' reach to consumers by providing more addressable and measurable solutions, thus offering higher efficiency and return on investment while also delivering improved consumer experiences through engaging content.

JP Colaco, Senior Vice President and Chief T-Ads Officer at T-Mobile, stated, "T-Mobile is always envisioning new ways to deliver for consumers and we see a tremendous opportunity to provide more relevant and personalized advertising. Combining T-Mobile's customer-centric approach and its expertise as one of the nations most scaled marketers, with Vistar's leading out-of-home technology means advertisers can easily place their ads where they know their audience will be, improving every step of the customer journey. Together with Vistar, T-Mobile will deliver advertising solutions built by marketers, for marketers."

Michael Provenzano, Chief Executive Officer and Co-Founder of Vistar Media, commented, "We are excited to join T-Mobile, a brand that truly understands the power and potential of out-of-home advertising. For 13 years, Vistar has pioneered using technology and data to transform OOH into a strategic and measurable channel. T-Mobile's belief in the future of OOH - and their decision to acquire Vistar - underscores the strength of this channel. Together, we have the opportunity to enhance our offerings for customers and partners globally, and inspire brands to think bigger and redefine how they engage with audiences in the real world."

Digital-out-of-home advertising is increasingly seen as a vital channel in the digital age. According to eMarketer, spending on DOOH advertising in the US is expected to constitute over one-third of the projected nearly $10 billion outlay on out-of-home advertising by 2025. This presents a timely opportunity for market transformation as digital screens become more readily accessible.

T-Mobile's acquisition involves a cash payment of approximately $600 million, with the transaction slated to conclude in the first quarter of 2025, contingent on customary closing conditions and regulatory approvals.

Following the acquisition, T-Mobile expects the transaction to be slightly accretive to its EBITDA and contribute to the company's financial targets. This acquisition is also expected to potentially influence T-Mobile's 2025 Shareholder Return Program, which anticipates returning up to $14 billion.

T-Mobile is America's supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile, and Mint Mobile.

Vistar Media is the home of out-of-home, providing brands, marketers and media owners with an intelligent platform for buying and selling OOH. Vistar hosts an extensive digital out-of-home inventory globally, offering the scale, data and expertise that allow brands to capture 'a better kind of attention'.