Vinyl Group (ASX:VNL) struck a deal to acquire urban culture brand Time Out Australia from the Time Out Group for "nominal consideration," according to a Wednesday filing with the Australian bourse.

Vinyl is also entering a long-term franchise deal under which Time Out Group will receive an ongoing revenue royalty rate and annual minimum guarantees with respect of the Australian market. The agreement has an initial five-year term and will be automatically renewed unless terminated.

The deal, which is targeted for completion on June 24, comes as Time Out pursues a franchise model for select markets by partnering with established media operators.

Time Out Australia is profitable and is expected to contribute positively to Vinyl Group's earnings before interest, taxes, depreciation, and amortization on a pro-forma basis in fiscal 2027, per the filing.

Meanwhile, Vinyl Group also completed a AU$2.4 million placement under which it will issue about 44.4 million ordinary shares at AU$0.054 each. The proceeds will be used for integration costs, working capital, and near-term operational initiatives associated with the Time Out Australia acquisition.