Ooh Media, which is owned by Champ Private Equity, announced today that it had agreed to purchase Ten’s out-of-home business for $120 million upfront and up to $25 million to be payable in three years.

Champ, which owns Blue Star, acquired Ooh in March, soon after Ooh reported a 14% increase in net profit and a 27% fall in debt.

The Eye acquisition, which will be funded by borrowing and additional shareholder investment, will help grow Ooh and the Australian outdoor sector, said Champ director Darren Smorgon.

“We believe this will bring increased competitiveness into the advertising industry as the company can be more responsive to the needs of advertisers,” he said.

Ooh chief executive Brendon Cook said the deal would help Ooh satisfy its customers’ growing demand for out-of-home advertising.

“Combining these two companies will provide Australian advertisers with a broader range of solutions and innovative products to expand their reach in a competitive and rapidly evolving media environment,” he said.

Ooh will acquire Eye’s businesses in Australia, New Zealand, Indonesia, America and the UK as long as the takeover receives regulatory approval.

However, as part of the deal, Ooh said it would rely on Ten’s help to sell the US and UK businesses because “they do not fit within Ooh’s growth strategy”.

Ten may be forced to reacquire those assets if they can’t be sold, according to the network.

Ten announced in March that it would conduct a strategic review into Eye after receiving takeover approaches and then entering into an exclusivity agreement with one of the bidders.

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