(Reuters) - T-Mobile US (NASDAQ:TMUS) said on Monday it has agreed to acquire Vistar Media, a real-time outdoor advertising technology provider, for about $600 million, in an all-cash deal.
The deal would strengthen the telecom provider's advertising business by giving a foothold in the digital out-of-home (DOOH) advertising market, as brands transition from static billboards to more creative and engaging digital screens.
DOOH advertising is projected to account for 42% of total OOH revenue in 2025, according to the UK's WPP (LON:WPP)'s media investment firm GroupM.
T-Mobile will acquire all of Vistar Media's marketplace and technology solutions for buying, selling and managing media campaigns across 1.1 million digital screens provided by OOH media houses and brand advertisers.
The transaction is expected to close in the first quarter of 2025.
"Combining T-Mobile's customer-centric approach and its expertise as one of the nation's 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," said JP Colaco, chief T-Ads officer of T-Mobile.
"T-Mobile's belief in the future of OOH - and their decision to acquire Vistar - underscores the strength of this channel" said Michael Provenzano, CEO of Vistar Media.