The Raiz Invest Ltd (ASX: RZI) share price is moving almost 8% higher at the time of writing following the company's latest announcement.
Before market open, the micro-investing platform informed shareholders of a strategic investment from Seven West Media Ltd (ASX: SWM). The Australian media giant will leverage its country-wide audience to assist in accelerating Raiz's customer growth.
This strategic move on behalf of Seven West is less than a month after it announced the acquisition of Prime Media Group Limited (ASX: PRT). Making the Raiz investment the company's second strategic play in the past month.
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What is spotlighting the Raiz share price today?
It was only a few weeks ago when Raiz proudly announced it had reached a major milestone in the company. On 10 November 2021, the mobile-based investing platform paraded its achievement of hitting $1 billion in funds under management (FUM).
Today, news of the $960 million diversified media company, Seven West Media, getting involved with Raiz will likely grab the market's attention.
According to the release, ASX-listed Seven West will take a strategic investment of a 6.6% stake in Raiz. This will be facilitated through a $10 million share placement. Additionally, the new Raiz shares were priced at the 10-day volume-weighted average price of $1.617.
Aligning both parties, the media giant will make payment for the investment via two components. Firstly, Raiz will receive $2 million in cash. Secondly, Seven will conduct advertising across its various avenues to the equivalent value of $8 million. This will give the Raiz platform reach to over 18 million Australians through the media giant's publications.
Management commentary
Commenting on the announcement, Raiz joint group CEO Brendan Malone said:
With Seven we will be able to re-engage with many of these customers as well as expand our reach to a fresh audience and explain why Raiz is an excellent product for them for saving and investing in and outside of superannuation, even if they have broking accounts or high interest saving accounts with other organisations. We are not an either-or product.
Meanwhile, Seven West Media managing director and CEO James Warburton said:
Raiz is a disruptive digital player that is targeting a huge market opportunity. Combining Raiz's consumer offering, which has widespread appeal, with SWM's scale and audience reach provides a significant opportunity to grow the business and is a strong fit with the strategy of our Seven West Ventures group.
The Raiz share price has strengthened by 62% since the beginning of 2021.
