Acquisition
October 13 2000 - 3:00AM
UK Regulatory
RNS Number:4587S
Sportsworld Media Group PLC
13 October 2000
SPORTSWORLD MEDIA GROUP PLC
EUROPE'S LARGEST EXTREME SPORTS CONTENT
SUPPLIER JOINS SPORTSWORLD
Sportsworld Media Group plc ("Sportsworld"), the sports TV production,
sponsorship and event marketing company, announced today the acquisition of a
51% stake in Europe's leading extreme sports programme content supplier and
video distributor, X-treme Video SAS ("X-treme"). The total consideration is
approximately #1.25 million, comprising a cash consideration of FF 9,058,787
(approximately #828,000) and the issue of 73,843 new Sportsworld ordinary
shares of 1p each. Sportsworld has an option to acquire the remaining 49%
after four years.
Sportsworld will have call options and the Vendor will have put options over
the remaining 49% of X-treme's share capital, the consideration of which is
the greater of #1.25 million and 49% of six times the average net profits over
the financial years ending 30 June 2001, 2002 and 2003, subject to a maximum
consideration of #12 million.
X-treme was founded in 1994 by Franck Bywalski and Valerie Martin, who
identified a demand in the European market for high quality freesports content
for television and video. X-treme has accumulated an impressive archive,
consisting of more than 400 hours of quality programming, making it one of
Europe's leading suppliers of extreme sports content. Currently, X-treme,
based in Biarritz, France, has distributors in 20 major territories, and sells
videos through retailers and direct mail featuring all freesports, including
surfing, snowboarding, motorcross and skateboarding. X-treme Video also
supplies broadcasters and advertisers with high quality footage and film
clips.
Sportsworld already owns the video label, Chilli Video, a leading producer of
windsurfing, mountain biking, snowboarding and BMX, which complement X-treme's
catalogue. The production expertise of Chilli Video and Pro-Active Television
- the sport TV programme producer which Sportsworld acquired in June - will
provide further opportunities to create and re-purpose X-treme's footage,
strengthening its position across television, video and internet, and creating
cross-platform exploitation for a range of freesports-related products.
The acquisition of X-treme will create Europe's largest combined catalogue of
free and extreme sports footage, with over 800 hours of high quality, original
programming.
Application will be made to the United Kingdom Listing Authority ("UKLA") and
the London Stock Exchange for admission of the new ordinary shares to the
Official List of the UKLA and the London Stock Exchange's markets for listed
securities.
Commenting on the acquisition, Geoff Brown, Chief Executive of Sportsworld
said:
"Sportsworld has a focused acquisition strategy, and the addition of X-treme
Video to our portfolio is in line with us developing our core activities in
the expanding sports media market. X-treme Video is an exciting business with
a great reputation with broadcasters, consumers and within the freesports
industry. Between us, we now have the largest freesports programming library
in Europe, if not the world."
Franck Bywalski, co-founder of X-treme Video, said:
"Freesport customers demand quality programming. There are many companies
providing footage, but very few providing quality programming. Quality has
always been our rule for the brand, and that is why we are pleased to join up
with Sportsworld. As part of a larger group, we are well positioned to further
expand our business in video entertainment and new media."
Enquiries:
Geoff Brown, Chief Executive
Sportsworld Media Group plc Tel: 020 7240 9626
Shaun Whatling, Director
SSM Sportsworld Tel: 020 8394 5801
Franck Bywalski, Co-founder
X-treme Video Tel: + 33 55 943 8600
Tim Spratt / Tania Wild
Financial Dynamics Tel: 020 7831 3113
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