04:26 PM EST, 01/13/2025 (MT Newswires) -- T-Mobile US ( TMUS ) will buy digital-signage advertising marketplace Vistar Media for $600 million in cash, a deal that is expected to deliver more measurable marketing solutions.

The transaction features Vistar's marketplace and technology solutions that enable buying, selling and managing media campaigns, T-Mobile US ( TMUS ) said Monday. Vistar's portfolio includes a global network of more than 1.1 million out-of-home, or OOH, digital screens owned by nearly 370 media owners.

The wireless carrier said it will be able to combine its customer insights with the ad-tech platform to deliver engaging content for consumers and more measurable solutions for advertisers. T-Mobile's shares closed 1% higher.

"T-Mobile is always envisioning new ways to deliver for consumers and we see a tremendous opportunity to provide more relevant and personalized advertising," JP Colaco, T-Mobile's chief T-Ads officer, said in a statement.

The transaction is expected to close in the first quarter of this year, subject to regulatory approvals. It is expected to be slightly accretive to T-Mobile's earnings before interest, taxes, depreciation and amortization post close.

The deal provides upside to the long-term growth outlook T-Mobile provided in September. T-Mobile at the time projected that its service revenue growth would accelerate at a compound annual growth rate of roughly 5% between 2023 and 2027, while core adjusted EBITDA growth would rise at a 7% CAGR by 2027.

T-Mobile on Monday called the timing of the deal "perfect," pointing to eMarketer data showing digital OOH ad spending is projected to account for more than one-third of the nearly $10 billion estimated to be spent on total OOH ads in the US this year. "Digital screens still represent a small percentage of the overall OOH advertising market and are becoming more accessible," it wrote.

Vistar's platform has transformed OOH advertising into a "strategic and measurable channel," according to its chief executive, Michael Provenzano. "T-Mobile's belief in the future of OOH -- and their decision to acquire Vistar -- underscores the strength of this channel," he said.

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