Focus Media acquires outdoor ad firm

Chinese digital signage megapower Focus Media is on a tear buying up companies in the region with the cash acquired from their IPO (or their profitable digital signage network, of course :) As this article notes:

Focus Media Holdings Limited, which owns and operates one of the largest digital-signage advertising networks in China, has entered into a definitive agreement to acquire Infoachieve Limited, a BVI incorporated company, whose 100 percent-owned subsidiary Shanghai Framedia Advertising Development Ltd (“Framedia”) claims to be the largest community advertising network in China.

Under the agreement, Focus Media will acquire a 100 percent equity stake in Framedia for US$39.6 million in cash and US$55.4 million in the form of Focus Media common stock and an additional potential future payment of up to US$88.0 million in Focus Media common stock (valued at US$24.56 per ADR) contingent upon Framedia meeting certain earning target in 2006, for an aggregate potential payment of up to US$183.0 million. The acquisition is expected to close by the end of 2005 and to be accretive to Focus Media’s earnings per share in 2006, according to the company's announcement of the deal.