BARCELONA, Spain—Private Media Group (PMG) has signed a definitive agreement to acquire Sureflix Digital Distribution, a leader in the digital distribution of premium gay content, the companies announced Wednesday. Sureflix is the parent company of Maleflixxx.tv, SplashShots.com and the Maleflixxxx affiliate program. When finalized, the deal will be a stock-only transaction.
The acquisition extends PMG’s position as a global distributor of premium adult content and gives the company a strong position in a key vertical market, a spokesman said. The announcement follows the January acquisition of Gamelink, a provider of online video-on-demand services, and adds a significant new market segment to PMG’s distribution channels for internet protocol television, broadcast, mobile and DVD products.
“This acquisition is the next step in the ongoing expansion of our global digital media platform, Private Chief Executive Officer Ilan Bunimovitz said. “It adds another dimension to our platform and broadens our market knowledge. In 2009 we entered the VOD and U.S. markets through the acquisition of Gamelink. We [also recently] completed a joint venture with BlueBird Films, utilizing our distribution platform to bring their movies to market in multiple channels worldwide.
"With Sureflix, we are extending our platform and expertise into the gay market," Bunimovitz continued. "We will continue to expand our reach by building solutions, partnering when necessary, and acquiring companies that enhance the value of our platform. Sureflix was an important deal, but it must be viewed in the context of an aggressive growth plan fueled by solidifying our position in emerging markets, completing accretive acquisitions that fill strategic gaps and growing our share in existing markets by aggregating premium content for our global network.”
Sureflix President Eric Johnson said the deal is based on complementary strengths.
“It is hard to imagine a better fit across all aspects of a deal,” Johnson said. “Sureflix wanted stronger penetration into distribution channels that Private dominates. Private wanted a strong entry into our vertical and access to territories we have been developing for years. Sureflix wanted access to Private’s core product with a broad e-commerce platform. The list of complementary attributes goes on and on.
"As part of Private, we will be able to offer producers the most developed distribution network in the industry," he added. "And like Private, we occupy far more shelf space in our existing channels by delivering a broad catalog of premium content. This deal opens many revenue channels and allows us to deliver the distribution muscle of a storied international brand to our premium catalog.”
The definitive acquisition agreement was signed Oct. 9, and the transaction is expected to close in November. The acquisition agreement 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.
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.
