Scots TV production business Tern bought for more than £ 5m
A television production business that has worked with the like soft he BBC, Channel 4, National Geographic and Sky has been bought in a £ 5 million- plus deal.
Tern Television Productions, which has its offices in Glasgow, Aberdeen and Belfast, has been bought by stock market- listed Zinc Media Group.
Established in 1988, Te rn specialises in factual TV pro - duct ion. It typically produces more than 60 hours of TV annually for UK broadcasters, as well as international outfits such as the Discovery channel.
The firm has bagged a string of awards over the years including B aft as and Royal Television Society accolades.
Zinc described the acquisition as a“pivot al step” in its “buy and build strategy” as the firm looks to meet the demand f or content and consolidate what it said was a“fragmented independent TV production industry ”.
Under the terms of the deal, Zinc will pay up to £5.45m, comprising an initial amount of £ 2m plus £ 1.1m for surplus cash and earnout consideration of up to £ 2.35m to be paid in cash and shares. It has also pushed the button on an oversubscribed share placing to raise about £ 3.5m.
Peter Bertram, chairman of Zinc Media Group, said: “We believe this acquisition will place us in a strong position to further expand and grow in an industry which is experiencing ever-increasing demand for original content, due to the rapid growth of connected devices and new TV platforms.
“By augmenting our busi - ness through acquisitions such as that of Te rn, the enlarged group will have greater abilities to reach new markets, to establish strategic relationships with broadcasters and international commissioners and to produce innovative content.
“We continue to remain focused on operating a highquality and respected busi- ness, maximising share - holder value.”
Zinc said the acquisition brought with it“a highquality and reputable management team”, all of whom intend to stay with the business.
Tern currently employs 20 staff across it so perat ions in Scotland and Northern Ireland. For the financial year to 31 March, the firm generated audited sales of £ 5.34m and a profit before tax of £ 300,000. Total assets amounted to just over £3 ma soft he end of March.
Last month, Zinc reported a return to profitability for the first time in several years and following a period of restructuring.
That left the group with a“new strategy, are juve na ted business model and a significantly simplified product offering ”, Zinc said yesterday as it unveiled the Tern deal.