DAYTON, Ohio — STRATACACHE has announced a $25 million acquisition fund targeting technology and media companies in the digital signage/digital out-of-home (OOH) media marketplace.
“Although the out-of-home advertising segment is one of the fastest growing segments in the industry, tightening advertising budgets worldwide are putting increased pressure on many early stage companies in the marketplace,” says STRATACACHE chief executive Chris Riegel. “Many venture-backed or privately held companies with considerable potential were expecting unrealistic growth in the short term and are now running into significant financial difficulty.”
With its award-winning digital signage solution, ActiVia for Media, STRATACACHE is poised to grow its offerings and bolster its emphasis on technology by adding complimentary solutions and acquiring appropriately aligned enterprises. STRATACACHE’s strong merger and acquisition (M&A) team has demonstrated success through multiple acquisitions within the past five years. Opportunity exists for further growth in this sector for companies with strong management and healthy balance sheets.
Marketing spend remains strong and is still expected to increase in 2008, but an easing of growth in the economy has thwarted an immediate boon in the OOH marketplace. Overall, dollars are undeniably shifting within most major media budgets, moving out of traditional media and into interactive and digital point-of-sale mediums, yet that shift is being stymied by current economic conditions.
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