Vision Media Group International | News
29 August 2006 Acquisition of competitor POPtv
ScreenFX plc (AIM: SFX), the digital advertising and communications specialist, today announces the acquisition of POPtv Limited ("POPtv"), an independent media sales company representing screen media in shopping malls, health and retail environments, for a total consideration of £75,000, together with a management earn-out linked to gross profit over the next four years. Independently owned POPtv, which stands for 'Point of Purchase' TV, had a turnover of £1.2 million at 31 March 2006. All POPtv senior management will remain in position.
To demonstrate his confidence in the enlarged group, Mike Cottman, Non-Executive Chairman of POPtv and its majority shareholder, will be subscribing for £500,000 of new shares in ScreenFX at a price of 1.8 pence per share. The admission of the new shares is expected to become effective at 8.00 a.m. on 4 September 2006. The new shares will rank pari passu in all respects with the existing Ordinary Shares in issue.
David Clark, Chief Executive Officer of ScreenFX, said: "The synergies that exist between POPtv and our Mall and Health divisions make this an excellent acquisition, as it allows the Group to remove a competitor and remain focused on our core offerings whilst strengthening our overall market position. We are now represented in more of the country's biggest shopping malls, and will significantly increase our penetration into the growing public health sector."
ScreenFX adds the digital advertising and content contracts with Bullring Birmingham, Manchester Arndale, Frenchgate Doncaster, Oracle Reading and FBDY Fulham to its strong existing roster of shopping malls which includes The Trafford Centre, Manchester; The MetroCentre, Newcastle-upon-Tyne; and, Lakeside, Thurrock. As a result, the Company's MallFX division will increase total reach from 360 million customers to over 450 million shoppers annually.
In the public health sector, the acquisition adds the advertising revenues from The Life Channel currently screened in almost 900 GP surgeries nationwide, and also, Baby TV (a specialist channel in antenatal waiting rooms in hospitals).
Mike Cottman, Non-Executive Chairman of POPtv, said: "In selecting ScreenFX as our future partner we firmly believe we have chosen the business best placed to capitalise on the growth in the out of home digital screen space. ScreenFX offers a broad range of services which are ideal for the continued development of our clients and our people."
For further information:
| ScreenFX plc | |
| David Clark, Chief Executive | Tel: +44 (0) 161 428 5544 |
| info@screenfx.com | www.screenfxplc.com |
| POPtv Limited | |
| Mike Cottman, Non-Executive Chairman | Tel: +44 (0) 870 120 3838 |
| info@poptv.ltd.uk | www.poptv.ltd.uk |
| Seymour Pierce Limited | |
| Stuart Lane, Corporate Finance | Tel: +44 (0) 20 7107 8000 |
| stuartlane@seymourpierce.com | www.seymourpierce.com |
Media enquiries:
| Abchurch | |
| Henry Harrison-Topham / Laura Riascos De Castro | Tel: +44 (0) 20 7398 7700 |
| henry.ht@abchurch-group.com | www.abchurch-group.com |
Notes to editors:
ScreenFX has five operating divisions, these are detailed below:
MallFX – a division established in 2004 that provides digital advertising solutions to UK premium shopping malls. Current portfolio includes 20 'super malls' which yields a footfall of over 340 million consumers per annum.
TrainFX – established in 2005, this is a new division designed for transport sector media, providing state of the art technology for premium marketing opportunities on commuter trains.
HealthFX – a new division, established in 2006 that targets the health sector, both public and private, and addresses the need for more modern methods of communication with patients, provides patient information and communication systems.
BigFX – established in 1999, this division provides large format out of home poster and banner advertising media space.
LiveFX – a specialist provider of creative marketing and content services to both internal operating divisions and external clients.
ScreenFX joined AIM in March 2004. Further information can be found at: www.screenfxplc.com
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