LONDON (Alliance News) - Broadcaster ITV PLC on Monday said it has agreed a GBP100.0 million cash deal to acquire the television assets of much-smaller rival UTV Media PLC.
Under the deal, ITV will buy UTV's television unit, including its UTV Northern Ireland and recently launched UTV Ireland businesses, in order to strengthen its free-to-air business and allowing it to run a more efficient network, ITV said.
After the deal completes, ITV will own 13 of the 15 regional licences for the Channel 3 network and will be able to invest in the combined business using its existing content portfolio, advertising sales team and broadcast infrastructure.
"We have a long-standing relationship with UTV, which has been the leading commercial broadcaster in Northern Ireland for many years thanks to its strong regional identity and blend of excellent local programming and strong network show," said Adam Crozier, ITV's chief executive.
"The last few years have seen increasing consolidation in the global television sector, creating media companies that span content, broadcast and platform ownership. Having successfully extended the reach of our television business with the launch of UTV Ireland, I believe that shareholder value can be maximised through our television interests becoming part of ITV's global broadcast and content business," said Richard Huntingford, UTV's chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
ITV (ITV)