ZOO Digital has announced a $15.5m placing to fully fund the acquisition of its Japanese partner. The proposed acquisition is expected to be c.10% earnings accretive in the first full year of ownership (FY25). The Group has also released an FY23 trading update outlining a c.5% revenue miss, but EBITDA is at least in-line and we upgrade +4% to $12.5m (SCMe: $12.0m). Net cash is significantly ahead at $11.8m (SCMe: $8.7m). The proposed acquisition is highly complementary and would consolidate the Group’s supply chain in a key geography thus cementing ZOO’s position as a leading provider of media localisation services across South East Asia. ZOO has demonstrated through previous Korean and Indian investments that increased capacity can unlock incremental revenue across a number of major streamers. ZOO has grown revenues at an impressive 33% CAGR in the 4 years to FY23 and remains a top pick.