US playout firm Encompass has agreed to buy Ascent Media’s content distribution business, including its London-based TX facility for a total of £76 million.
It follows last week’s announcement that another US firm, Deluxe Entertainment, has struck a deal to buy Ascent Media’s creative services and media services divisions, including UK post houses Ascent 142, Soho Film Lab and Rushes.
President and chief operating officer of Encompass, Bill Tillson, gave assurances that there will not be redundancies at the London facility.
He said Encompass will make “a material investment in technology and personnel,” citing the firm’s January acquisition of the satellite services division of US firm Crawford Communications as evidence.
“When we bought Crawford we showed that we don’t like to acquire and try to wring costs out,” he told Broadcast. “We increased the number of employees and invested millions of dollars there. And that pattern will continue in UK. We will expand the personnel base and materially invest in infrastructure.”
Once the deal has received regulatory approval Ascent will be rebranded “to tie in with Encompass brand”, Tillson added.
As well as the London facility, Encompass will take control of Ascent’s broadcast facilities in the US and Singapore.
Encompass said it had taken on the assets for a total consideration of $120 million (£76 million), including $113 million in cash and debt totalling approximately $7 million.