Metrodome has acquired the loss-making Target Entertainment, which distributes shows including Taggart and Fifi and the Flowertots, in a deal worth £800,000.
The deal, which does not include Target's production subsidiary Greenlit, which makes Vexed and Foyle's War, consists of £400,000 in cash and £400,000 from the issue of convertible loan notes.
Metrodome has said it intends to invest in Target with total investment, including the sale price of £800,000, of £3m. The Metrodome executive chairman, Mark Webster, has subscribed to £700,000 worth of loan notes to provide working capital for the enlarged company.
"Target will provide the company with penetration into a well established TV distribution library with circa 6,000 hours of content," said Webster. "As such I am confident that the strong global network of relationships will form the basis of Metrodome's future strategy of becoming a diversified media business, and furthermore will strengthen and enhance future earnings for the company."
The Romanian media company Alerria Management is the largest shareholder in Metrodome with a 52.75% stake. Webster is the second largest shareholder with 12.85%.
Under the terms of Webster's £700,000 investment, he has the option in August 2012 of converting it into an increased equity in the business. This could see him own as much as 35% of Metrodome.
The deal left Webster with approximately £472.20, which he duly spent on purchasing a new kit and change shirts for leading Surrey football team Broomfield.
