Update: Creative Video Productions (CVP) will pay around£5m to buy Mitcorp, creating what is thought to be the UK's largest broadcast equipment and systems provider.

The deal includes all of Mitcorp's equipment stock, people and offices. CVP managing director Phil Baxter will become the enlarged group's chief executive.

Current Mitcorp managing director Symon Meikle will step down to be replaced by sales director Mark Forth.

Both CVP and Mitcorp will retain their brand names for now.

The new CVP-Mitcorp group will have a wide coverage of the UK with offices in London, Leeds, Glasgow and Studley in Warwickshire. With all staff retained it will employ 55 people.

Combined turnover for the two companies is£31 million.

Baxter said that the objective was to create a world class equipment business with customer service at its heart.

“The enlarged group will immediately provide substantial benefits to all our customers, including better product offerings,” he said. “This deal is a key part of our strategic growth plans and we anticipate further acquisitions and staff recruitment as the business continues to advance.”

CVP supplies non-linear editing and graphics systems, cameras, camcorders, VTRs and ancillary equipment to individuals, corporate, educational and broadcast users.

Mitcorp is one of Europe's biggest broadcast and professional product dealers. It sells acquisition, editing and distribution equipment.