Seyi Tinubu has acquired advertising company, E-Motion Advertising, founded by Sim Shagaya. Tinubu, an industry player in outdoor advertising, acquired E-Motion through his company, Loatsad Promomedia Limited.
The acquisition is the latest in the advertising world. Both E-Motion Advertising and Loatsad Promomedia operate in the same market and this deal is expected to accelerate the growth of both companies and position them as the market leader of the advertising industry, according to Newtelegraph.
E-Motion was founded by Sim Shagaya in 2005 before he founded online supermarket, Konga. According to statement on E-Motion, Shagaya remains a director at E-Motion which operates Out-of-Home advertising including billboard, transit and street furniture segments. The company is backed by leading local and international institutional investors with proven track records of funding and supporting high-growth companies.
What you need to know: The financial aspect of the deal wasn’t made public. The negotiation is under wraps like most deals involving Nigerian startups which are undisclosed amount. But the deal gives Tinubu the majority stake in E-Motion.
However, it is not known if the acquisition will lead to E-Motion changing its name into that of Loatsad Promomedia since it’s a take-over deal.
Also, Sim Shagaya have had three of his startups acquired;
- DealDey acquired by Ringier
- Konga acquired by Zinox
- E-Motion acquired by Loatsad Promomedia
Shagaya’s current startup is uLesson, a tech platform transforming learning method in the education system.
Not first acquisition for E-Motion: This is not the first acquisition E-Motion will be involved. Although the previous acquisition wasn’t a major one like that of Loatsad. ARM Capital Partners had acquired a ‘significant minority equity interest’ in E-Motion in 2011.
Aside from the financial investment from ARM Capital Partner, the deal served as a leverage for E-Motion due to the network of ARM Capital Partner across Nigeria. The Vice President at ARM Capital Partners, Emeka Emenike is a director at E-Motion.
Commenting on the acquisition, Tinubu, the son of former Lagos State Governor and National Leader of the ruling party, All Progressive Congress (APC), Bola Tinubu, said he can’t wait to meet his new family, “Thankful for my team and partner Adenrele Olusoga and can’t wait to meet our new family @E-motion (Most Importantly To God be the Glory)”
Meanwhile Sim Shagaya’s reaction to the acquisition was simply put, “15 years after founding. That was a long run.” He said while reacting to a Tweet about the acquisition on Twitter.
15 years after founding. That was a long run… https://t.co/dD6iIma8gY
— Sim Shagaya (@SimShagaya) November 17, 2019