ITV Acquires Leftfield In US Deal

UK commercial broadcaster ITV plc has acquired a controlling stake in Leftfield Entertainment Group, in a deal that makes ITV Studios US Group the largest independent unscripted producer in the US.

"The acquisition, brokered by About Corporate Finance, represents a major milestone in ITV's strategy of building a strong international content business particularly in the US, and gives ITV Studios a significant presence on both the East and West Coasts," a statement said.
"Leftfield Entertainment, founded by CEO Brent Montgomery, is an important addition to the ITV Group's growing portfolio of production companies on both sides of the Atlantic and follows ITV's acquisition in the last 18 months of Gurney Productions, High Noon Entertainment, Thinkfactory Media and DiGa Vision in the US as well as UK producers So Television, The Garden and Big Talk."
ITV are to make an initial cash payment of $360m for 80% of Leftfield, with further potential payments dependent upon "significant profit growth". Put and call options are in place to buy the remaining 20% of Leftfield, under which a call option can be exercised from three years after the initial deal and a put and call at the end of year five.
Leftfield Entertainment Group was created when Leftfield Pictures acquired Sirens Media in March of this year, followed shortly afterwards by the creation of two joint ventures: Loud Television and Outpost Entertainment.
Leftfield Pictures sold its first series in 2008 and the group now produces more than 300 hours of unscripted programming a year for over 30 US networks. It has 26 series commissioned for 2014 and 31 development projects underway.
Pawn Stars has topped the ratings on History for four years in a row and is the channel's number one show worldwide. It has been commissioned for 104 episodes this year to take its total number to almost 400 shows since the series was originally commissioned in 2009.
Other successful Leftfield series include Sirens Media's Real Housewives of New Jersey, the second highest rated show in Bravo history, as well as History's Counting Cars and American Restoration.
Adam Crozier, Chief Executive of ITV plc, said: "Leftfield is a fantastic success story, rapidly growing from a single pilot to become one of the biggest indies in the US.
"The team has combined creativity with strong production expertise, with over 70% of the business coming from returning series and a pipeline of new ideas coming through in 2014 and 2015 that is really encouraging.
"We are delighted that Brent and the team are joining the ITV family. The acquisition of the Leftfield Group represents a significant addition to ITV Studios as we continue to build our global content business over the long term."
Brent Montgomery, who remains CEO of the Leftfield Group, said: "This is an incredibly exciting time at Leftfield, as our agreement with ITV marks a major milestone in the company's evolution. Two decades into the explosion of unscripted television, our business is changing more rapidly than ever.
"To continue developing aggressively for emerging markets, creating new genres and working with the most talented and inspired producers – both in the US and abroad – requires collaboration and partnership. Our teammates at ITV are in sync with Leftfield creatively and commercially, and I'm looking forward to working with them for the next five years and beyond. We're confident that, together, we will continue to deliver breakthrough programming for buyers around the world."

www.itv.com

(IT/JP)