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(Alliance News) - Scottish broadcaster STV Group PLC said Wednesday it has acquired a unspecified majority stake in content producer Primal Media from Lionsgate.
STV did not specify what stake it will hold in Primal after the deal except that it will be a "majority." Former majority investor Lionsgate will retain a minority stake in the firm with the remainder held by founders Adam Wood and Mat Steiner.
STV explained there would be no upfront consideration payable, but the agreement includes the option for STV to buy the remaining stake in the firm in the future.
The deal will allow the production arm of STV to "realise full value from Primal Media's current and future programming slate." This includes its comedy series "Jerk" currently showing on BBC3 as well as two new programmes for Channel 4.
Previously, Primal Media has developed a number of programmes including "Release the Hounds" for ITV2 and Bigheads for ITV.
"The acquisition follows the announcement earlier this year of a strategic partnership between both companies to co-develop formats to target UK and international networks and is the latest step in STV's ambitious plans to grow STV Productions into a world-class production company with a multi-genre slate of returning series under the leadership of managing director, David Mortimer," STV explained in a statement.
STV Chief Executive Officer Simon Pitts said: "It's a little over a year since we set out our new strategy to deliver production and digital growth and re-establish STV as a creative force in Scotland and beyond. With a new team fully in place we are building real momentum and delivering encouraging results."
"Programming successes like recent drama 'The Victim' for BBC1 demonstrate our growing creative strength, and the acquisition of Primal Media - whose founders have an unrivalled track record of devising hit entertainment formats - will further strengthen our creative pipeline as we seek to become one of the UK's leading producers," Pitts added.
Shares in STV were 0.3% higher at 353.00 pence in London on Wednesday. STV will release its interim results on September 3.