12th Mar 2015 07:26
LONDON (Alliance News) - ITV PLC said Thursday it has agreed to acquire buy Dutch media tycoon John De Mol Jr's production company Talpa Media BV for an initial cash consideration of around EUR500 million, funded from its existing cash resources and new debt facilities.
The maximum consideration ITV will pay for the Netherlands-based production firm is up to EUR1.1 billion, contingent on Talpa delivering "significant profit growth" over an eight-year period, and de Mol's continued commitment to the business during this period.
ITV expects the acquisition to add to earnings immediately, and to boost the growth of its production arm, ITV Studios, internationally.
Talpa is behind reality television programmes 'The Voice', 'Utopia', and 'Dating in the Dark'.
ITV says that Talpa's "focus on high quality formats fits well with ITV Studios' existing genre focus, and will add to ITV's growing portfolio of international production companies."
Talpa generated EUR61 million in earnings before interest, tax and amortisation on revenue of EUR233 million in 2014.
de Mol and his senior management team will continue to play "a key role" in format creation and development, working with ITV Studios Managing Director Kevin Lygo, ITV said.
ITV said it expects the deal to close in the second quarter of 2015, subject to regulatory approval.
"Great content is at the heart of ITV's growth strategy and the acquisition of Talpa builds on the success of our international content business and is absolutely in line with our desire to create and own formats that travel," said ITV Chief Executive Adam Crozier in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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