Global Traffic Network Inc announces definitive agreement to acquire Commercial Division of UBC Media Group plc

Global Traffic Network, a leading provider of custom traffic reports to radio and TV in North America, Australia and the United Kingdom, has announced that its UK subsidiary has entered into a definitive share purchase agreement to buy the commercial division of UBC Media.

UBC’s commercial division supplies traffic and travel information to around 230 radio stations in exchange for commercial airtime inventory, which it then sells on. It also supplies entertainment news to around 120, again in return for airtime. Global Traffic Network is paying an initial £9 million pounds for the business.

Global Traffic Network already has an operation in the UK, where it supplies the UKRD Group and other independent stations, plus the Highways Agency’s Traffic Radio service.

Its Chairman, CEO and President, William Yde, says, “This is an extremely exciting acquisition which not only significantly increases our UK footprint, but dramatically increases Global Traffic Network as a whole. We believe that, despite the current market forces, there is significant revenue growth potential in the network we are acquiring. Even though we are paying a premium for this, we see it as a modest investment to acquire the network”.

GTN UK Managing Director Paul Hutton adds: “This is a huge step-change in the operation in the UK, but one for which our management team is well prepared. Working with the present UBC Commercial management, and using GTN’s expertise both here and in Australia and North America will allow us to build a fantastic business supplying a top-quality service to affiliates and airtime proposition to advertisers”.

Simon Cole, Chief Executive of UBC commented, “The UK Radio market is developing very fast as consolidation takes hold and I am very confident that GTN can look forward to maintaining and building the strong business we have developed here”.

The acquisition requires, among other things, shareholder approval. If the conditions are met, the transaction should be closed in early March.

Notes to editors: Global Traffic Network Inc already provides customised traffic reports for free to affiliated commercial radio and TV stations across Australia and Canada in exchange for 10” spots of airtime inventory. Global Traffic Network UK serves 12 commercial radio stations, and the Highways Agency’s Traffic Radio service. Its management team in the UK consists of Paul Hutton (Managing Director), Kim Applegarth (Operations Director), Anthony Rudd (Head of Radio), Will Jackson (Traffic Radio Contract Manager), Bill Pezzimenti (Director of Sales) and Matt Jones (Senior Developer).

For more details call Scott Cody, GTN Chief Operating Officer on +1 814 625 2615 (Scott is five hours behind the UK).