The Woolworths Group Ltd (ASX: WOW) share price is falling on Monday morning.
At the time of writing, the retail giant's shares are down 0.5% to $37.35.
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What's going on with the Woolworths share price?
The Woolworths share price has dropped into the red today despite the announcement of an acquisition.
According to the release, the company's retail media business, Cartology, has signed an agreement to acquire 100% of Shopper Media Group for a cash consideration of $150 million.
Shopper Media Group is a leading Australian digital out of home media company, offering targeted shopper advertising through a national screen network of more than 2,000 screens in over 400 shopping centres.
The transaction is subject to ACCC approval and the satisfaction of customary closing conditions. If all goes to plan, completion is expected to occur by the end of calendar year 2022.
Management commentary
Woolworths' CEO, Brad Banducci, spoke positively about the acquisition and the retail media business. He said:
Retail media is developing rapidly and is an important part of the evolution of Woolworths Group. We're excited about the opportunity to bring together the complementary capabilities of our retail media business, Cartology, with Shopper's expertise in out of home media.
This sentiment was echoed by Cartology's managing director, Mike Tyquin, who believes that this is an important acquisition. He added:
Shopper's screen network offers advertisers outstanding retail context and proximity. Shopper has invested heavily in technology, helping the business pave the way for innovation in retail out of home media.
The acquisition of the business is an important next step in further unlocking the growth potential of Cartology and accelerating our goal to become the trusted media partner of choice for brands and retailers. It will allow us to provide our clients more opportunities to reach their customers via seamless and targeted advertising solutions.
