The deal will improve synergies between the two businesses. Translucis' technology platform, media sales team and advertiser base will benefit from the cost savings in Avanti's current presence in broadband telecommunications. The group is now the only company in the UK which can offer network creation and management, content creation and media sales as in-house functions.
Translucis operates a digital media network in the UK. It distributes the MagneticTM channel (a combination of brand advertising, promotional messages and customized programming) and an advertising only service, to screens in over 240 on-trade venues across the UK. Magnetic benefits three target audiences. For advertisers it delivers the ability to communicate with the persons between the ages of 18 and 30. For retailers, it delivers a revenue stream and the means of driving profitability via promotional messaging. For consumers, it provides constantly changing programming content.
Avanti has been in business for seven years, providing satellite engineering services to a wide range of government and private sector clients. Two years ago it took investment from several companies (including two publicly quoted North American investors) to establish its own network infrastructure. It now operates several retail tv channels, and provides data services to other clients.
Graham Sumeray, Managing Director, New Business Ventures, Diageo, said: "This deal represents a successful exit for New Business Ventures and marks an exciting new stage in the development of Translucis. As the company has developed it has become important for it to move out of the Diageo stable in order to enable it grow to the next level. The synergies between Avanti and Translucis are clear and I am excited to see how the joint entity grows in the future."
David Williams, Managing Director, Avanti Communications, said: "The combination of Avanti's ConnectTV and Translucis will create a leading force in the growing area of retail television. Beacuse of this acquisition we will gain access to Translucis' powerful media sales capability and content library and established customer base as well as gaining significant economies of scale. I am very excited about our prospects in the UK market from an existing position of market leadership."
"I am also delighted to announce that the eminent leisure and hospitality industry professional John Brackenbury CBE, has agreed to become Chairman of Avanti with immediate effect."
