In 2021 Lamar purchased a 20% stake in programmatic out of home sales company Vistar Media for $30 million.  Here’s an analysis of that investment sponsored and analyzed by Signvalue.

Vistar Financials and Exit Multiple

Lamar’s Vistar Media investment was accounted for using the equity method which means that Lamar recognized 20% of Vistar Media net income on Lamar’s financial statement.   We used that data to calculate Vistar Media’s net income for the past three years.  We also compute that Vistar Media sold to T-Mobile for 23 times net income.

The investment generated a 50% IRR for Lamar

We hope someone at Lamar got a dealmaking bonus because Lamar’s investment in Vistar Media generated a 50% IRR.

Plus $60 million in programmatic income…

In addition to the investment earnings, Lamar received nearly $61 million in revenue over the past four years from being connected to Vistar Media’s programmatic platform.

If you have questions, contact one of SignValue’s experienced analysts for a free and confidential consultation at info@signvalue.com or call 480-657-8400.

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