Motio partners with Adonix to launch transit media network
Motio Limited (ASX: MXO) has announced the Motio Adonix Exclusive Sales Agreement, alongside a $300,000 investment for a 13.33% equity stake in Lorikeet Corporation, the parent entity of Adonix. The partnership introduces Motio Drive, a digital taxitop advertising network targeting approximately 150 vehicles in its initial rollout. This expansion marks Motio’s entry into location-based transit media, complementing its existing health, play, café and venue networks through a capital-light structure with a performance-linked pathway to potential full ownership.
Under the agreements, Motio will act as the exclusive sales partner for Adonix, selling media across the transit network alongside its established digital out-of-home (OOH) portfolio. The Board believes the expansion into transit media extends campaign reach, provides additional flexibility for clients, and enables access to new advertiser categories. The $300,000 subscription agreement with Lorikeet Corporation will accelerate the rollout of digital taxitop screens across key metropolitan markets.
The partnership aligns with Motio’s platform strategy of selling owned media whilst expanding into complementary networks through disciplined, performance-linked structures. This approach allows Motio to diversify revenue streams whilst maintaining capital efficiency, acquiring exposure to a new advertising format without full upfront acquisition costs.
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Understanding digital transit media
Digital transit media refers to high-definition screens mounted on vehicle rooftops that deliver dynamic advertising content in high-traffic urban areas. These screens operate as mobile billboards, providing street-level visibility as vehicles move through city centres and metropolitan routes. The format enables advertisers to reach audiences in locations where traditional static out-of-home media may have limited presence.
This advertising format has been established in major global cities including New York and London, forming part of the urban media landscape in these markets. The technology allows for programmatic content delivery, geographic targeting, and real-time campaign adjustments, distinguishing it from traditional static transit advertising.
For Motio (ASX: MXO), transit media fills a gap in the company’s portfolio by adding mobile, street-level visibility that complements its existing venue-based screen networks. The format potentially unlocks new advertiser categories seeking dynamic urban reach alongside the captive audience environments Motio currently serves across medical centres, cafés, indoor sports venues and hospitality locations.
CEO Adam Cadwallader
“Display advertising on taxi and transit media is not a new concept. It is widely accepted in major global cities and forms part of the urban media landscape. This format brings a sense of Manhattan to Australia, with the opportunity to enhance campaigns using the digital and geographic capabilities of these formats.”
How the Adonix partnership is structured
The Motio Adonix Exclusive Sales Agreement operates through a dual structure combining an exclusive sales partnership with a minority equity investment. Motio will sell media across the Adonix network alongside its existing networks, generating revenue without owning the full asset base initially. This allows the company to commercialise the transit media inventory immediately whilst limiting upfront capital commitment.
The $300,000 subscription agreement provides Motio with a 13.33% equity interest in Lorikeet Corporation. These funds will be allocated to accelerate the rollout of digital taxitop screens, expanding the Adonix network to approximately 150 vehicles across key metropolitan markets. The company is currently in a pre-launch phase, working with foundation clients to build the network on high-quality vehicles.
Completion of the subscription agreement is conditional upon execution of the Option Deed and Shareholders’ Agreement by 30 April 2026. The Shareholders’ Agreement will incorporate customary governance and minority shareholder protection provisions.
Performance-linked call option creates acquisition pathway
The Motio Adonix Exclusive Sales Agreement includes a call option mechanism enabling Motio to acquire the remaining shares in Adonix that it does not already own. The option vests if Motio generates at least $600,000 of gross revenue on the Adonix network within any three-month period over the next two years. Upon vesting, Motio has a six-month window to determine whether to exercise the option.
If exercised, the consideration for the remaining shares will be calculated based on the annualised net revenue from two three-month periods: the period prior to option vesting and the period prior to option exercise. This annualised net revenue figure is then multiplied by Motio’s enterprise value to revenue (EV/Revenue) multiple at the time of exercise, calculated using a 30-day volume-weighted average price (VWAP) of Motio’s share price.
Motio retains discretion to settle the consideration in cash, scrip, or a combination of both, subject to regulatory requirements. If settled in cash, a floor and ceiling net revenue multiple of 1.0x and 1.55x will apply. The option will expire on the earlier of 2 July 2029 or 24 months from the date that 120 units have been installed.
| Element | Detail |
|---|---|
| Vesting trigger | $600,000 gross revenue in any 3-month period |
| Vesting period | 24 months (or until 2 July 2029 / 24 months from 120 units installed) |
| Exercise window | 6 months post-vesting |
| Pricing basis | Annualised net revenue × Motio’s EV/Revenue multiple (30-day VWAP) |
| Cash settlement range | 1.0x – 1.55x net revenue |
This structure aligns acquisition cost with demonstrated commercial performance. Motio only acquires full ownership if the network proves viable at scale, measured by specific revenue thresholds generated through its sales efforts. The performance-linked mechanism reduces execution risk whilst providing a clear pathway to consolidate the asset if the partnership delivers targeted returns.
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Strategic fit and growth outlook
Motio Drive extends the company’s digital media footprint into mobile urban formats, positioning the transit network as a complement to Motio’s existing portfolio of over 1,500 digital displays across more than 1,250 locations. The Board believes the expansion supports continued top-line growth into FY27 and beyond, with the capital-light structure enabling network expansion without significant balance sheet impact.
The partnership provides Motio with access to a new advertising format whilst leveraging its established sales capabilities across existing client relationships. Transit media offers geographic flexibility across metropolitan markets, enabling campaigns to reach audiences in high-traffic urban corridors alongside Motio’s venue-based placements in medical centres, cafés, indoor sports facilities and hospitality environments.
Zahar Martin, Managing Partner of Adonix
“Adonix was founded to bring sophisticated digital solutions to the transit OOH sector. With Motio’s strategic investment and sales leadership, we can accelerate the rollout and deepen our impact across key metropolitan markets. Adam and the Motio team share our vision for Adonix, and together, we are positioned to unlock the full potential of digital transit media.”
The strategic rationale for the Motio Adonix Exclusive Sales Agreement centres on four key benefits:
- Extended campaign reach via mobile urban format
- Access to new advertiser categories seeking dynamic street-level visibility
- Capital-light entry with performance-linked ownership pathway
- Geographic flexibility across metropolitan markets
The Board believes Motio Drive represents a disciplined extension of the company’s platform strategy, expanding into complementary digital formats through performance-linked pathways to ownership. The structure is designed to accelerate Motio’s transition into profitable growth mode whilst managing capital allocation risk through revenue-contingent acquisition mechanics.
The company will provide further updates as the rollout of Motio Drive progresses across key metropolitan markets.
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