U.K. distrib pays $1.2 million for fellow indie
The move comes after the distrib announced it terminated reverse takeover negotiations with Target on July 30 as “parties could not agree mutually satisfactory commercial terms.”
Under the deal, Metrodome will buy shares of both Target’s rights’ businesses, including its distribution and consumer products teams, and its film and entertainment production labels, Target U.S. and Charles Finch’s Pink Sands, which is currently in development on Gillian Anderson starrer “The Smell of Apples.”
Greenlit, Target’s drama production arm, is not part of the deal.
In addition to the purchase price and working capital, Metrodome will also invest significantly in the company, seeing a total spend of $4.7 million.
Target founder Alison Rayson, will remain chief executive as well as taking up a seat on Metrodome’s board.
She said: “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.
“Target’s consolidation into the Metrodome group will provide the company with more firepower for rights acquisitions and with an enhanced back-office service.”
Merger aims to see Target’s specialism in global rights’ management complement Metrodome’s indie all-rights distribution business and estimates and annual revenue of more than $31 million.
Metrodome chairman and CEO Mark Webster said the acquisition was a “perfect fit” and predicts business doubling in revenue and size as a result.
Compass Advisers was the corporate finance advisers to Metrodome for the deal.