Targeted digital media and data company Shopper developed and sold to Woolworths for $150 million.

Shopper Media has a network of more than 2000 digital advertising screens and data infrastructure in more than 450 shopping centres across the country. It was founded in 2015 and has about 50 staff.

Our results

Business sold by Fortitude Investment Partners to Woolworths in September 2022 with an internal rate of return (IRR) of around 40%.

32%

margins (EBITDA) from a loss-making position

20%

market share grown from a base of 1%

430

Shopping centres covered up from 100


CHALLENGES OVERCAME

  • Built a national business of significance despite high barriers to entry

  • Successfully built out several data-led, value-add products and service add-ons for customers

  • Overcame significant operating challenges to deliver strong outcomes to investors and shareholders.

 

Investment reasoning

An opportunity presented itself due to disagreements with shareholders. The right partner was more important to the founders than value or structure.

 
 
 

Strong market tailwinds

We recognised an impressive growth opportunity in the retail out-of-home media sector. The sector’s compound annual growth rate (CAGR) hit 14.7% in the years up to entry.

 
 

Strong competitive advantage

The retail out-of-home sub-sector represents a unique value proposition. The position is not easily replicable through exclusive media assets and proprietary data.

 
 
 

Strong management team

The founders came from successful careers within large providers in the sector. They showed skill in building quality sales and operating teams.

 
 

Compelling and scalable unit economics

High return on invested capital (ROIC) enabled us to invest at a relative early stage. We secured an attractive investment structure with downside protection through preferred equity return.