Johannesburg - Kagiso Media and Lagardère Active Radio International (LARI) have acquired Acceleration Media from its former owner, Acceleration, for an undisclosed amount, Kagiso announced on Tuesday
Kagiso said in a statement it planned to diversify into digital media and become a significant player in South Africa's online media and advertising environment.
"The Acceleration group, meanwhile, will further intensify its focus on growing its international digital marketing technology services and solutions business," it said.
Kagiso Media chief executive officer Murphy Morobe said: "Kagiso Media has been exploring opportunities in South Africa's fast-growing digital environment as part of its growth strategy.
"The acquisition of Acceleration Media gives us a foothold into the online media environment. It signals the beginning of the actualisation of our strategy to position Kagiso Media in the "new media" space to complement our strong broadcast assets.
Acceleration chief executive office Jacques van Niekerk said the sale of Acceleration Media makes business sense because Acceleration Media and Acceleration "are moving in different strategic directions".
"After entering discussions with a number of suitors for the company, we are pleased to have found a new owner that is an excellent strategic fit for Acceleration Media in the form of the Kagiso Media group and LARI," said van Niekerk.
"This deal will allow both Acceleration Media and Acceleration to maximise their growth potential in the years to come. Going forward, Acceleration plans to enhance its core business in the marketing technology services and solutions market," he said.