Spanish producer-distrib Vertice 360 will merge with Lavinia, a production and post-production company with offices in Barcelona, Madrid and Brussels.
The deal will be put through largely via a share swap, with Vertice taking 92.2% of Lavinia shares and Lavinia 15% of the new merged company.
Vertice will offer cash for the remaining 7.8% of Lavinia. Price has not been revealed. Lavinia takes two seats on Vertice’s board.
The merger is a significant step up in size for Vertice. Launched October 2006, and headed by prexy Jose Maria Irisarri, Vertice aims to boost revenues to €240 million ($310.8 million) by 2012. At a strategy day this March, it announced it would do so through the acquisition of companies.
The Vertice-Lavinia merger will boost annual sales from $142.45 million in 2009 to $246 million this year, according to Spanish financial daily Expansion.
Irisarri declared in November 2008 that Vertice was strengthening its service operations to cater to TV companies cutting their costs by outsourcing technical services.
Vertice-Lavinia’s merger could also aid access to bank credit facilities. The news comes after Vertice rival Mediapro filed for bankruptcy protection in mid-June for its contents division, Mediaproduccion. This could open up opportunities for Vertice-Lavinia.