T-Mobile has agreed to acquire Vistar Media, an ad tech firm specializing in digital out-of-home, for $600 million, the companies announced on Monday.

Why it matters: The all-cash deal supports the telecom's growing ad business as it seeks to generate revenue beyond phone and internet plans.

Zoom in: T-Mobile said the deal combines Vistar's tech capabilities and scale with its customer insights and data. New York-based Vistar supports buying, selling and managing OOH campaigns. OOH is expected to grow 7.1% year to $56.1 billion in 2025, per GroupM's year-end forecast.

Vistar's network of more than 1.1 million digital screens includes displays in Times Square and other high-trafficked areas along with screens in concert venues, offices, gyms, airports and more. Vistar has worked with about 370 OOH media owners and more than 3,000 advertisers.
Vistar's backers include Lamar Advertising and Ben Franklin Technology Partners of Southeastern Pennsylvania. The deal is expected to close first quarter of 2025, subject to regulatory approvals.
Allen & Company served as financial adviser and Cleary Gottlieb Steen & Hamilton as legal counsel to T-Mobile. Canaccord Genuity advised Vistar Media with Lowenstein Sandler as its legal counsel.
Zoom out: T-Mobile has been investing in its ad business even as its competitors pull out and sell their media and ad tech assets.

In 2022, T-Mobile acquired Octopus Interactive, a startup that managed ad-supported tablets in rideshare vehicles.
Last year, T-Mobile launched a retail media network for its more than 20,000 in-store screens. It also sells ads in its loyalty app, T Life, and partnered with ad-supported streamer Plex.
What they're saying: "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, senior vice president and chief T-Ads officer for T-Mobile, said in a statement.

"For 13 years, Vistar has pioneered using technology and data to transform OOH into a strategic and measurable channel. T-Mobile's belief in the future of OOH — and their decision to acquire Vistar — underscores
the strength of this channel," Vistar Media CEO Michael Provenzano said in a statement.
What we're watching: The deal is another boost to OOH's digital transformation as more billboards convert from static media to screens. GroupM expects digital to account for 42% of OOH ad revenue in 2025.