U.K. TV production firm Ten Alps said Wednesday that it has agreed to acquire Reef Television for approximately $7.8 million (£5 million) as British producers continue to consolidate.
Musician Bob Geldof, who co-founded the company in 1999, will step down from the Ten Alps board along with fellow board member Timothy Hoare. The company said they will be replaced by former Channel 4 chairman Luke Johnson and Jonathan Goodwin as non-executive directors. Geldof will remain a shareholder.
The price tag for the deal is comprised of £2 million in initial consideration and deferred consideration of up to £3 million plus an additional amount of a possible earn-out.
The deal came in conjunction with a re-capitalization that gives the company new funding and includes a conversion of debt into equity.
Ten Alps is known for documentaries and factual shows. Reef series include BBC consumer experts show Put Your Money Where Your Mouth Is.
The Reef acquisition "signals the first step in a strategy to grow the Ten Alps business through both acquisition and organic growth," the company said.
"This is a significant moment in the turnaround of Ten Alps," said CEO Mark Wood. "The proposed acquisition of Reef Television is an important first step in a strategy to achieve greater scale and momentum in our TV and digital content businesses. The new capital structure will enable us to invest in faster growth."
Said Geldof: "This is the best thing for Ten Alps in years. This restructuring puts us in a perfect position for a hugely exciting media future. Having Luke and Jonny on board says it all really. It is exactly what we need."
This story was first published by The Hollywood Reporter.