Wingate, Sandbar acquire Australia's Medical Channel

As part of the deal, Wingate and Sandbar also provided financial backing for Medical Channel to buy advertising company Community Network. The total investment by the two firms is A$25 million ($19.2 million).

Both Medical Channel and Community Network provide media and advertising services through televisions and monitors located in clinic waiting rooms; the combined company will have more than 3,200 screens across Australia. Advertisers see patients in clinics as valuable targets since they have common concerns and can be expected to stay in the area with the screen for extended periods.

Ads provided through the companies' screens tend to focus on health, banking and insurance products; the long wait times allow text-heavy campaigns that would not work as well in other mediums. The screens can also be used for community announcements and public service campaigns.

"The transaction is compelling with the business combination creating a clear market leader with a national presence," said David Jackson, a director at Wingate, in a statement. "This presents a unique platform for advertisers to reach consumers in a targeted manner and measure returns. The growth opportunity is underpinned by a continued focus on innovation and exceptional service delivery for our customers and partners."

Jackson and Sandbar Managing Director Darren Smorgon will join the board at Medical Channel.

Wingate is a private investment and advisory firm that focuses on mezzanine and buyout opportunities for midmarket companies in Australia. Its investments include a mezzanine round for financial services firm Quickfee in 2014 and participating alongside the Riverside Company in the management buy-out of online training services provider Learning Seat.

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• Topics
• Australasia
• Media
• Healthcare
• Buyouts
• Buyout
• Australia