Motio’s Transit Media Bet Hinges on Revenue Milestones for Full Acquisition
Motio Limited has secured an exclusive sales agreement and minority investment in Adonix, launching Motio Drive to expand its digital media presence into transit advertising.
- Exclusive sales partnership with Adonix for digital taxitop media
- Investment of $300,000 for 13.33% equity in Lorikeet Corporation
- Launch of Motio Drive to extend digital place-based network
- Call option to acquire remaining Adonix shares linked to revenue milestones
- Expansion aims to accelerate growth with capital-light, performance-based model
Motio Expands Into Transit Media
Motio Limited (ASX:MXO) has taken a significant step to broaden its digital out-of-home advertising footprint by entering into an exclusive sales agreement and minority investment with Adonix, a specialist transit media network. This partnership introduces Motio Drive, a new platform featuring high-definition digital screens mounted on taxitops, marking Motio's entry into urban transit advertising.
The deal includes a $300,000 investment in Lorikeet Corporation Pty Ltd, the operator behind Adonix, securing Motio a 13.33% equity stake. This capital injection is earmarked to accelerate the rollout of digital taxitop screens, targeting an expansion to approximately 150 vehicles across key metropolitan markets, including Sydney.
Strategic Synergies and Growth Potential
Motio’s CEO, Adam Cadwallader, emphasised that transit media is a well-established advertising format in major global cities and sees this as a natural extension of Motio’s existing place-based media networks. By integrating transit media with its current health, play, café, and venue channels, Motio aims to offer advertisers enhanced campaign reach and flexibility, tapping into new categories and urban audiences.
Adonix’s Managing Partner, Zahar Martin, highlighted the shared vision between the two companies to bring sophisticated digital solutions to the transit out-of-home sector. The partnership is expected to accelerate Adonix’s market penetration and deepen its impact in metropolitan areas.
Performance-Linked Acquisition Option
Beyond the initial investment, Motio has secured a call option to acquire the remaining shares of Adonix, contingent on achieving at least $600,000 in gross revenue within any three-month period over the next two years. This performance-linked structure aligns with Motio’s capital-light strategy and provides a clear pathway to full ownership, subject to market success.
If the option is exercised, the purchase price will be calculated based on Adonix’s net revenue and Motio’s enterprise value to revenue multiple, with flexibility to settle in cash, shares, or a combination thereof. This approach reflects a disciplined expansion strategy, balancing growth ambitions with financial prudence.
Looking Ahead
Motio Drive adds a premium, highly visible urban advertising format to Motio’s portfolio, complementing its extensive network of over 1,500 digital displays across more than 1,250 locations. The company is currently in a pre-launch phase, working with foundation clients to build the network on quality vehicles in key cities.
As Motio accelerates its transition into profitable growth, the rollout of Motio Drive will be a key focus, with further updates expected as the network expands and revenue targets are pursued.
Bottom Line?
Motio’s transit media push could redefine its growth trajectory, but success hinges on hitting ambitious revenue milestones.
Questions in the middle?
- Will Motio Drive achieve the $600,000 quarterly revenue target within two years?
- How quickly can the Adonix network scale beyond 150 vehicles in key markets?
- What new advertiser segments will Motio attract through transit media integration?
