UBC is to sell its traffic and travel news business to US radio company Global traffic Networks for £9 million in cash.
The deal was meant to be finalised last year but was not completed due to what UBC called the unfavourable economic conditions at the time.
The deal is now on again, however, with both parties entering into a sale agreement.
UBC’s commercial division supplies traffic, travel and entertainment news to UK radio stations in exchange for commercial airtime inventory that is then sold to advertisers.
In the financial year to March 2008, UBC’s commercial division generated revenue of £11.53 million, and £4.64 million in the first six months of the 2008/09 financial year.
Simon Cole, UBC chief executive, has signed a three year non-compete deal and will remain with the company.
John Quinn, the company’s chief operating officer, is to move across to GTN with the commercial division.
William Yde III, chairman, CEO and president of GTN, said: “We are extremely excited about the acquisition, as it will dramatically increase our presence in the United Kingdom, adding approximately 230 radio stations and over 700,000 radio advertising spots per year.
“We have always seen the United Kingdom as having huge potential for us and we believe this acquisition is the best strategy to take advantage of that opportunity. Although we are paying a premium for UBC’s commercial division, we see the overall initial consideration as a modest investment given the footprint of the network. We look forward to working with the management of the commercial division as we move forward with the execution of our growth strategy in the UK.”
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