AirMedia Group, the Chinese Nasdaq listed digital signage operator is to acquire Excel Lead International Ltd for a price of around $70M, and take an 80% equity interest in Flying Dragon Media Advertising Ltd for around $1.5M.

These firms will give AirMedia Group control over the advertising business on gate bridges in 10 airports in mainland China. The gate bridges span between boarding gates and the aircraft and are passed by every traveller.

The transactions will further expand AirMedia's air travel advertising network, which currently includes digital TV screens in 53 airports and in-flight programming on 9 airlines, including China's 3 largest.

AKA COMMENT

AirMedia is quickly establishing itself as the biggest player in a key sector of the world's fastest growing advertising market. This acquisition takes another towards their goal of consolidating what has been a very fragmented sector. Their valuation of US$1.1B is underpinned by their soaring growth - their last quarter 2007 results (revenues of US$16M) were almost the same as their total revenues in 2006 (US$17.9M), and the quarter's profits were over US$7M.

They will now control more that 95% of the digital TV screens in the 15 largest airports in China. To enhance their offering they have also been busy strengthening their content relationships this year, they have in the last couple of months inked deals with China's largest on-line video content house VODone, and state broadcaster Shanghai Media Group.