BARCELONA—Private Media Group, Inc. (NASDAQ GM: PRVT) has announced that its acquisition of Sureflix Digital Distribution, a leader in digital distribution of premium gay content and owners of maleflixxx.tv and splashshots.com, was finalized Oct. 29. The acquirement provides Private with a leadership position in the lucrative gay market, the company said.
Last week’s codification of a definitive agreement signed Oct. 9 concludes a deal that provides for the issuance of 3,900,000 unregistered shares, or 6 percent 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 2,100,000 shares of Private common stock based on earn-out targets, according to a statement issued Tuesday.
“With Sureflix, we extend our platform into yet another new market and broaden our leading position in the adult industry into the gay space,” said Ilan Bunimovitz, chief executive officer of Private. “Together, we offer the most comprehensive catalog to affiliates and consumers. This is an accretive acquisition and it will act as a strategic accelerator for both parties, enabling growth into new markets and territories while opening up new business relationships.”
“It is hard to imagine a better fit,” said Eric Johnson, president of Sureflix. “As part of Private, we will be able to offer members of the industry the best distribution network. This deal opens many revenue channels and allows us to deliver the distribution muscle of a storied international brand to our premium catalog.”
The combined pro-forma revenue of the two entities for the six months ending June 30, 2009, was $19.3 million, compared to $16.0 million in revenue for the same period for Private alone, a 21 percent difference, the company said.
For more information about Private Media Group, visit PRVT.com. For Private's consumer products, visit Private.com.
For more information about Sureflix, visit Sureflix.com.
