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DETROIT and SAN JOSE, Calif. — Gas Station TV (GSTV) and Verifone have entered into a 50-50 joint venture that combines the assets and operations of Verifone's Pump Media division with GSTV, which is owned by Rockbridge Growth Equity and Falcon Investment Advisors.
The combined business will operate under the GSTV brand and deliver 3.3 billion annual impressions through more than 18,000 locations nationwide by the end of 2017. Financial terms of the deal were not disclosed.
On par with other major media brands, the new GSTV will provide marketers with the broadband to reach 75 million viewers every month, including one in three adults ages 18 years old and up, and nearly 31 million millennials across the United States.
National and regional marketers across all industry sectors now have a simple and effective way to reach valuable, highly attentive consumers in an increasingly fragmented media environment, the companies stated.
"We celebrate a milestone today as we formally join two leading media organizations in a powerful partnership," said Joe Mach, president of Verifone North America. "Under the GSTV umbrella and with Verifone's influential backing, we will draw on our collective partnerships and experiences to strategically accelerate growth, push the boundaries of technology, and deliver the proven effectiveness of video at the pump."
According to GSTV, third party analytics partners have shown that campaigns on the GSTV platform deliver compelling return on investment for to global brands, from double-digit increases in quick service restaurant visits to millions of dollars in incremental consumer packaged goods sales and significant increases in awareness and purchase intent.
"Our new joint venture with Verifone is a game-changer for the industry," said David Leider, president and CEO of the new GSTV. "The scale of GSTV's monthly unique viewership will compete with the largest cable networks and digital out-of-home platforms, reaching verified consumers when and where they are most receptive to real-time marketing messages. We are making it even easier for ad agencies to embrace gas video media, which provides unrivaled effectiveness in helping brands reach their business goals."
Under terms of the deal, the company will be located at the current GSTV headquarters in Detroit, along with offices in New York and Los Angeles as well as other key business centers. Members of the existing GSTV and Verifone Pump Media management teams will lead the new joint venture.
Sullivan & Cromwell served as legal counsel for Verifone, and Honigman Miller Schwartz and Cohn LLP served as legal counsel for GSTV. Peter J. Solomon Co. acted as a strategic advisor on the deal and Stephens Inc. arranged the financing.
Both companies will have equal representation on the new company's board of directors.
San Jose-based Verifone is a leader in payments and commerce solutions.
Headquartered in Detroit, GSTV is the largest national video network reaching active consumers. It delivers one-on-one exposure to hundreds of millions of viewers every month at the nation's leading gas retailers across the United States, including Speedway, Circle K, Tesoro, Sunoco, BP, Chevron, Conoco-Phillips, Gulf, Arco, Marathon, Exxon-Mobil, Shell and Murphy USA.