MONTREAL – Stingray Group Inc. (TSX: RAY.A; RAY.B), a leading music, media, and technology company, today announced that it has acquired InStore Audio Network, the largest in-store audio advertising network in the United States, reaching 100 million shoppers each week in over 16,000 grocery retailers and pharmacies across the US for total consideration of up to approximately C$59 million subject to a specific earn out mechanism set forth in the purchase agreement. With this acquisition, Stingray expands its retail-based digital audio advertising footprint in the United States and reaffirms its position as a leading global provider of state-of-the art digital media solutions. InStore Audio Network generated an estimated C$18.5 million in revenues in the last year.
InStore Audio Network enables the monetization and delivery of highly targeted digital audio advertising at a location level via custom curated streaming music services. Leading grocery and pharmacy retailers like CVS, Rite Aid, Albertsons, Safeway, Southeastern Grocers, Ahold, Tops Markets, Weis Market and Brookshires currently leverage InStore Audio Network’s retail media solutions which deliver a proven sales lift for advertisers.
Under Stingray’s ownership, InStore Audio Network will continue to broaden its existing retail media offering with a focus on verified audience measurement, digital ad serving and programmatic monetization. The addition of Stingray’s technology and digital media expertise, combined with InStore Audio Network’s track record of success, will also accelerate overall network expansion.
“Stingray has successfully launched the first Canadian retail-based digital audio advertising network. Both agencies and brands have shown strong interest in reaching and connecting with principal shoppers within retail environments through an innovative, digital-first advertising solution,” said Eric Boyko, President, Co-founder, and CEO of Stingray. “We are thrilled to welcome InStore Audio Network to the Stingray family and look forward to building strong connections between retailers, consumers, and brands. We expect this acquisition to deepen our presence in the US market and drive revenue within the growing retail media category.”
“This acquisition by Stingray fortifies a partnership that will provide significant value to our current retail partners and advertisers,” said Gary Seem, President of InStore Audio Network. “We look forward to expanding our offerings as the importance of retail media and the ability to reach shoppers directly at the point-of-purchase continues to grow.”
Stingray will wholly own and operate InStore Audio Network, under the continued leadership and direction of its current management team.
Montreal-based Stingray (TSX: RAY.A; RAY.B) is a leading global music, media, and technology company with over 1,000 employees worldwide. Stingray is a premium provider of curated direct-to-consumer and B2B services, including audio television channels, over 100 radio stations, SVOD content, 4K UHD television channels, FAST channels, karaoke products, digital signage, in-store music, and music apps, which have been downloaded over 160 million times. Stingray reaches 400 million subscribers (or users) in 160 countries.
InStore Audio Network is the largest in-store audio advertising provider in the United States and delivers commercial audio messages to shoppers in over 16,000 grocery, drug, and convenience stores. InStore Audio Network provides music programming and equipment, retail specific messaging and third party branded messaging ad sales to retailers such as CVS, Rite Aid, Albertsons, Safeway, Southeastern Grocers, Ahold, Tops Markets, Weis Market and Brookshires. By reaching consumers at the point-of-purchase in a captive media environment with a compelling audio message, the InStore Audio Network reaches over 100 million shoppers every week and delivers proven sales lift for participating advertisers.