UBC to sell traffic and travel news business

Specialist radio group UBC is to sell its traffic and travel news business to US radio company Global Traffic Networks for £9 million in cash.

A deal was going to happen last year but was not completed at the time due to what UBC said were unfavourable economic conditions.

However, both companies have now entered into a sale agreement for the commercial division, which supplies traffic, travel and entertainment news to UK radio stations in exchange for commercial airtime inventory that is then sold to advertisers.

The financial year to March 2008 saw the commercial division generate 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.”

Cole said: “The talented commercial team at UBC has spent 13 years building up a market leading networking business in the UK and now it is time for that to be part of a bigger international operation. I’m hugely grateful to every member of the team for the contribution they have made to delivering value for UBC’s shareholders and delighted to be working with them and Global Traffic Network to take the business to a new level.”

UBC Media Group: 020 7453 16001 www.ubcmedia.com