Australian-listed Sports Entertainment Group Limited (SEG) has agreed to buy MediaWorks in a deal valuing the New Zealand radio and digital audio business at $130 million.

The company, listed on the Australian Securities Exchange, said it had entered a binding agreement to acquire all of MediaWorks from its current owners, including Quadrant Private Equity, Barclay Nettlefold and John O'Neill.

MediaWorks owns a stable of commercial radio brands including The Rock, More FM and The Breeze, as well as the Rova digital audio platform.

SEG described it as New Zealand's No 1 audio business, with about 2.4 million weekly listeners and a 59% audience share in the 25-to-54 demographic.

The company said the acquisition would create a leading transtasman audio, digital and entertainment group, with combined weekly audiences of more than 5 million listeners across Australia and New Zealand.

SEG already has a presence in New Zealand through Sports Entertainment Network (SEN).

SEG chief executive Craig Hutchison said the acquisition was a transformational step for the company.

"It gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital and entertainment capability across the Tasman.”

The existing MediaWorks management team, led by chief executive Wendy Palmer, was expected to continue running the New Zealand business after completion.

The purchase price is based on an enterprise value of $130m on a cash-free and debt-free basis.

SEG said MediaWorks was forecast to make $25.4m in EBITDA in calendar 2026, with a pathway to more than $38m by 2030.

It said the deal was expected to be accretive to earnings per share before synergies.

The company said it had already identified about $5Am ($NZ6.01m) of annual synergies.

The acquisition will be funded through existing cash, new bank borrowing and an equity raising.

SEG has launched a placement to raise up to about $A11.7m and also plans a share purchase plan to raise up to about $A2m.

Completion of the deal is targeted for October 1, subject to customary conditions including approval from New Zealand's Overseas Investment Office.