Captivate Network, a digital out-of-home media company aimed at reaching on-the-go business professionals throughout their workday, announced today that it has entered into an agreement to acquire Office Media Network. Terms of the cash and stock acquisition were not disclosed.
According to Captivate, the strategic consolidation creates North America's largest in-office media network and leverages the strengths of each company's distribution, technology, media solutions and editorial content, resulting in a stronger network and better solutions for Captivate's advertising and commercial real estate business partners. The resulting merged network will encompass more than 12,000 screens installed in more than 1,800 office buildings across North America's top urban markets.
Office Media Network, which featured The Wall Street Journal Office Network, was founded in 2006 and offered advertising content on digital signage screens in more than 750 office buildings across 15 top U.S. markets, the announcement said.
"This strategic consolidation is a big win for our advertising and commercial real estate partners," Captivate CEO Marc Kidd said in the announcement. "For the real estate community, we can provide more value through easier customization of solutions to meet the unique needs of each partner, and a more streamlined approach to developing innovations that reinforce Captivate's value as a class-A building amenity and eco-friendly tenant communication solution."
Tim Callahan, president and CEO of Callahan Capital Properties, said in the announcement, "I have enjoyed a long and mutually beneficial relationship with both Captivate and OMN, and can see how the combined entities will be able to offer a robust solution under a single roof. Combining these two quality companies can only be a positive development for the commercial real estate industry and its tenants."
The combination of Captivate and OMN will deliver a significantly larger network and audience, with the network's number of buildings growing by more than 70 percent and unique monthly reach increasing by nearly 60 percent over Captivate's previous footprint, Kidd said. The "new" Captivate Network will deliver more than 65 million Nielsen-measured ad impressions each month, he said.
Kinetic U.S CEO David Krupp said in the announcement that "the advertising industry has been looking for this type of consolidation for some time. Having one strong player in the office screens environment will be good for everyone involved. For us, it will make it easier to incorporate in-office screens into our video planning."
For the short-term, both networks will continue to operate separately while working to fully integrate OMN's technology, operations and staff into Captivate Network. Kidd said the integration process should be completed before the end of 2014, although advertisers immediately will be able to place buys across both networks through the Captivate sales team.
Captivate has signed an interim license agreement with Dow Jones to allow for the uninterrupted use of Wall Street Journal editorial content on existing OMN screens.
Jim Harris, founder and CEO of OMN, will join Captivate's Advisory Board to help facilitate the integration, and will work closely with Captivate's senior leadership team on network development and new business opportunities. Many other members of OMN's staff also will join Captivate, according to the announcement.
Captivate Network, founded in 1997, built a network of more than 10,000 elevator displays located in more than 1,000 office buildings in the U.S. and Canada. The company is owned by Generation Partners and Gannett Co.