DETROIT -- Rockbridge Growth Equity LLC, a Detroit-based private-equity firm, has signed a purchase agreement to partner with management in acquiring Gas Station TV (GSTV).
Founded in 2006 and located in Birmingham, Mich., GSTV--a Destination Media company--is a leading video network at the pump with 50 million monthly viewers. GSTV engages, influences and drives consumers to action with exclusive content from ESPN, CNN's Headline News and Buzz Today, Bloomberg TV and AccuWeather at gas stations and convenience stores across the country.
Rockbridge Growth Equity is leading the transaction. Other investors include Falcon Investments and Michigan Growth Capital Partners, co-managed by Grosvenor Capital Management and Beringea. The parties expect the deal to close in the coming weeks pending regulatory approval.
Partners Brian Hermelin, Kevin Prokop and Dan Gilbert--who is also founder and chairman of Rock Ventures LLC and Quicken Loans Inc.--founded Rockbridge in 2007. The firm invests in companies that specialize in financial and technology services, as well as digital media and consumer-direct marketing.
"Investing in an industry-leading and growing company like GSTV is a natural fit for Rockbridge," said Prokop, who also serves as managing director. "GSTV's management team have proven video at the pump to be a successful media growth category, and GSTV has emerged as the clear leader in the space."
GSTV has grown its gas station network from a five-station pilot in Dallas to more than 2,600 stations in 42 states. The company has increased its revenues 35% annually since 2009. In addition, GSTV has tripled its advertiser base and counts numerous Fortune 500 companies in the automotive, retail, consumer packaged goods (CPG) and personal finance industries among its clients. The partnership will leverage the Rock Ventures Family of Cos.' expertise in technology, marketing services and digital media to further accelerate growth.
"Partnering with Rockbridge empowers us to build upon our leadership position in the industry and bring a GSTV screen to every community in the country," said David Leider, GSTV CEO. "Together with Rockbridge we'll continue to drive strong return on investment for our advertisers and gas station retailers, while providing an exceptional content experience for our viewers."
Rockbridge Growth Equity invests in financial and business services, consumer-direct marketing and sports, media and entertainment industries. Rockbridge owns equity stakes in Triad Retail Media, RapidAdvance, Purchasing Power, Connect America, Account Now, Protect America, Northcentral University and One on One Marketing and is affiliated with other leading businesses in its target sectors including Quicken Loans, the Cleveland Cavaliers, Title Source and Fathead.
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