News

Outcast merges with PumpTop TV & Health Club Media Network

February 13, 2011

Pumping gas and pumping iron may sound like strange bedfellows, but in the digital out-of-home sector consolidating the two makes good business sense.

Outcast Media today announced 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.

According to the announcement, the new, 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, and Outcast also has secured bank financing from Silicon Valley Bank. Outcast CEO and cofounder Matthew Stoudt will serve as CEO of the merged entity, and Outcast Chief Media Officer and cofounder Nathan Gill will serve as chief revenue officer.

"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," Stoudt said in the announcement. "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.