04/14/2011
SANTA MONICA, Calif — Outcast Media solidified its leadership position in the fast-growing place-based advertising industry today by announcing a merger with its long-time joint venture partner PumpTop TV, as well as, an expansion into the fitness vertical through a merger with Health Club Media Network (HCMN), the largest advertising company in the health club industry. Together, this combined network creates unprecedented scale by reaching on-the-go consumers in more than 5,000 gas stations and health clubs in 130 U.S. markets.
Parthenon Capital Partners, a growth-oriented private equity firm and current investor in HCMN, will invest new equity capital in the combined company to fuel continued growth and expansion. Outcast has also secured bank financing from Silicon Valley Bank. Matthew Stoudt and Nathan Gill will lead the management team as Chief Executive Officer and Chief Revenue Officer, respectively.
“This consolidation represents the natural extension of both companies’ strategy to build a network dedicated to reaching the active, on-the-go consumer, at a point of influence,” said Stoudt. “With the strong support of Parthenon Capital Partners and PumpTop TV’s advanced technology platform, we will be able to rapidly expand our footprint and product offering to better serve our advertisers and venue partners.”
Outcast will initially operate the new company as two channels with a common purpose of reaching active consumers in spend-ready environments. Outcast’s PumpTop TV network reaches active consumers at the pump via 11,000 one-to-one high definition displays. HCMN, which will be run as a division of Outcast, reaches active consumers inside almost 4,000 health clubs through a combination of high definition digital and static displays.
“In today’s rapid-fire, highly cluttered world, advertisers must rethink the ways to reach and influence active consumers who lead busy and distracted lives,” said Gill. “Our consolidated network provides a national footprint for advertisers with the unmatched ability to connect with young and affluent consumers on the path to purchase.”
Jon Grad, a Partner at Parthenon Capital Partners said, “We are excited about partnering with Matthew, Nathan, and the rest of the team at Outcast and we believe that the combination of these great networks will create a true industry leader in the digital out-of-home market.”
ABOUT OUTCAST MEDIA
Outcast Media Holdings, Inc. is a digital media company reaching active, on-the-go consumers. The company consists of two channels: PumpTop TV and Health Club Media Network. Advertisers reach a Nielsen-audited combined audience of more than 68 million active consumers each month at health clubs and gas stations in 130 U.S. Markets. The company is privately held and is headquartered in Santa Monica, California, with offices in New York City and Chicago. For more information, visit www.Outcast.net.
ABOUT PARTHENON CAPITAL PARTNERS
Parthenon Capital Partners is a leading mid-market private equity firm based in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management. For more information, visitwww.parthenoncapital.com.
FOR FURTHER INFORMATION CONTACT:
Joshua Salter
Peppercom Inc.
212-931-6144
jsalter@peppercom.com