Private Media Group, Inc.(PRVT) announced that it has signed a definitive agreement to acquire Sureflix Digital Distribution as well as its extensive international affiliate platform, in exchange for common stock of Private. The definitive acquisition agreement was signed on October 9, 2009.
The acquisition agreement provides for the issuance of 3.9 million unregistered shares, or 6% of total shares outstanding following issuance, of Private common stock to the owners of Sureflix and related companies upon completion of the acquisition, and up to an additional 2.1 million shares of Private common stock based on earnout targets. This acquisition adds a new market segment to PMG's distribution channels in IPTV, Broadcast, Mobile, and DVD.
The transaction is expected to close in November 2009.
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