Following reports late last month that the deal was off, UK film distributor Metrodome has finalized its acquisition of London-based TV distributor Target Entertainment.
In a letter to investors, Metrodome said the deal was completed for £800,000 (approximately US$1.2 million) – £400,000 in cash and the remainder coming from the issuing of convertible loan notes. The purchase covers Target’s rights businesses and its film and entertainment production arms, Pink Sands and Target US, but does not include its drama production arm, Greenlit. Last year, Target’s turnover was £13.8m, and the company made a loss before tax of £727,000, after exceptional items of £438,000. The note to advisors stated that the majority of the loss was due to reorganization costs and interest on borrowings.
‘Target will provide the company with penetration into a well established TV distribution library with circa 6,000 hours of content,’ said Metrodome CEO Mark Webster in the letter. ‘As such I am confident that the strong global network of relationships will form the basis of Metrodome’s future strategy of becoming a diversified media business, and furthermore will strengthen and enhance future earnings for the company.’
Target Entertainment founder and chief exec Alison Rayson will stay on in Target’s CEO role and now has a place on the Metrodome board. ‘Target’s refinancing process has been a tough and lengthy one; however the superb outcome of achieving such strong financial backers for the business in Mark Webster and Metrodome makes it more than worthwhile for the company’s client base and staff,’ said Rayson in a statement. ‘Target’s consolidation into the Metrodome group will provide the company with more firepower for rights acquisitions and with an enhanced back office service. The two companies together will create a market leading independent rights business with a much broader offering domestically and globally. I am thrilled to be working with Mark Webster and his team, and excited about the significant potential ahead.’
Initial reports on the deal negotiations estimated the price tag at £10 million, a far cry from what was actually paid. However, Metrodome says it will invest a total of £3 million into the company, including the £800,000 already paid.