FSI advises Global Traffic Network, Inc. on its acquisition of a radio advertising business
Finers Stephens Innocent LLP, together with one of its US based Meritas partners, Maslon Edelman Borman & Brand LLP, has been advising NASDAQ-listed Global Traffic Network, Inc. (GNET) on its acquisition of a radio advertising business, The Unique Broadcasting Company Limited, from AIM-quoted UBC Media Group plc.
Completion took place on 2 March 2009 with an initial cash consideration of £9 million and a performance related earn-out payments in excess of £5.5 million.
Through its international operating subsidiaries, GNET is a leading provider of customised traffic and news reports to radio and television stations throughout Canada and Australia. In exchange for these reports, stations provide GNET with commercial airtime inventory that it sells to advertisers.
GNET had been looking for the right opportunity to apply this successful business model to the UK. Unique’s dominant position in that market, providing entertainment, traffic and travel news to the majority of UK commercial radio stations, made it ideal for this purpose and ensures that GNET can realise its rapid growth strategy, reaching approximately 21.5 million listeners weekly.
FSI’s corporate partner leading the deal Sara Wax said: “Throughout this transaction we have been consistently impressed by the persistence and determination of GNET to bring this deal to a successful conclusion and build its business in the UK, particularly as this transaction was negotiated through some of the toughest trading conditions in the radio advertising market. We have been delighted to work with the GNET team on this transaction and were pleased that the depth of our expertise in the radio and television industry has been used to good effect.”
GNET’s lead US counsel, Alan Gilbert of Maslon, said: “For both FSI and Maslon this transaction represents the real success story of the Meritas international network of independent law firms, proving again that working together we can provide our clients with a guarantee of high quality cost-effective legal support in every significant global jurisdiction.”
William Yde III, Chairman of the Global Traffic Network Group, said: “Market forces have meant that the acquisition of Unique has had a long gestation period, throughout which both FSI and Maslon have combined to provide a consistently high level of support and advice. The result being that GNET now has the perfect platform from which to build its business in another key world market for radio advertising.”