(Alliance News) - Digitalbox PLC on Monday said it has bought the web and mobile platform assets of TVGuide.co.uk Ltd, in a GBP550,000 deal.
Shares in the Bath-based digital media company were up 6.7% to 9.60 pence each in London on Monday morning.
Digitalbox said the completion of the acquisition is conditional upon the satisfactory upgrade of the TVGuide.co.uk website as part of the platform redevelopment.
Digitalbox will pay GBP20,000 immediately on exchange to trigger the platform redevelopment, followed by a further GBP350,000 payable on completion, which is expected to be within three to six months from the date of exchange. Finally, the company will make a deferred payment of GBP180,000 four months after the completion date.
The acquisition will be funded from the company's existing cash resources, which at May 24 were approximately GBP2.8 million.
Digitalbox said that the acquisition, which is expected to be immediately earnings enhancing, will see services acquired from TVGuide.co.uk renamed to Yo.tv Ltd.
Chief Executive James Carter said: "The acquisition of TVGuide.co.uk is another excellent addition to our growing portfolio of digital assets. It is an exciting business with considerable potential and an established brand."
By Sophie Rose; sophierose@alliancenews.com
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