Digitalbox completes £0.47m acquisition of TVGuide

13th Oct 2023 15:10

(Sharecast News) - Digitalbox announced the successful acquisition of the web and mobile platform assets of TVGuide.co.uk on Friday, as well as the Amazon Alexa TV Guide skill.

The AIM-traded firm said the acquisition involved a total cash consideration of £0.47m - 15% less than the initially announced amount.

It said the deal's payment structure included an initial exchange consideration of £20,000, followed by £0.27m due on completion, and a deferred payment of £0.18m scheduled four months post-acquisition.

The transaction was being funded from Digitalbox's cash reserves, which were reported to be around £2.3m as of 30 June.

Digitalbox described TVGuide.co.uk, launched in 2002, as a prominent dedicated interactive TV listings brand in the UK, providing detailed episode guides, video previews, and recommendations across more than 300 channels to a user base of over one million monthly users.

It also furnishes a smart speaker voice service via its Alexa skill.

The board explained that the acquisition would dovetail with Digitalbox's existing reach amongst UK TV viewers, mainly through its TV and celebrity news brand Entertainment Daily.

It was planning to amalgamate TVGuide.co.uk into its Graphene technology platform - a system previously used successfully in the integration of the Daily Mash, the Tab, and the Poke.

In financial terms, unaudited management accounts of TVGuide.co.uk for the year ended 31 December showed revenues and operating profits attributed to the acquired assets of £0.3m and £0.1m, respectively.

No liabilities would be transferred to Digitalbox under the agreement.

"The acquisition of TVGuide.co.uk is another excellent addition to our growing portfolio of digital assets," said chief executive officer James Carter.

"It is an exciting business with considerable potential and an established brand. Following the acquisitions of the Daily Mash, the Tab and the Poke, we have an established process of integrating assets onto our Graphene platform, and we are confident we can quickly grow the site's revenue and increase its profitability."

At 1030 BST, shares in Digitalbox were up 4.62% at 3.4p.

Reporting by Josh White for Sharecast.com.