After all the approvals including positive decision from Latvian Competition council has been received, Providence Equity Partners (Providence) has acquired MTG Free-TV, Pay-TV, digital and radio businesses in Baltic region for 115mio EUR, informed newly appointed Executive Chairman of AM Baltics Pierre Danon.
The deal between Providence and MTG Broadcasting was fully completed on October 18th 2017 and The new company will be called All Media Baltics (AM Baltics) and the following legal entities (TV3, LNT, Viasat, StarFM, SmartAD) falls under AM Baltics.
“We are happy the deal is successfully closed and we are investing in such a strong player in Baltic media market with big growth potential. During the first year, PEP plans to invest over 10mil EUR in AMB development, in technologies, which will offer the products and services and fit/serve the needs of the highly demanding media user. Investment will allow offering brand new products and services while continuing to provide the high-quality infotainment content to the user on the multiplatform basis,” said Providence Equity Partners managing director Karim A. Tabet.
He also stressed, that Providence’s impeccable reputation and wide experience guarantees the editorial independence is continued, and equal and non-discriminatory conditions for all media and advertising market participants is granted.
“Providence highly appreciates what local management team has done until now and are pleased to inform that the team will continue its work,” Tabet added.
The further growth of AM Baltics will be based on combination of the local and international industry expertise and experience.
“As we are to invest in new technologies – in HD, in VOD platform development, I hope my wide experience in telco industry will be valuable contribution here,” added Mr. Danon.
Mr. Danon also reassured that there is no plans to radically change TV channels. The focus will be on technical and technological developments to create new products and services delivering great customer experience.
Mr. Anton Dzyubenko, the new CEO of Viasat Baltics also will be joining management team. Mr. Dzyubenko clarified that investment to upgrade DTH setup boxes is planned during the first half of 2018 to maintain and improve customer experience, as well as to widen customer offering by providing interactive features.
“We have envisaged that first channels to be upgraded to HD experience will be TV1000 Premium and Viasat Sport Baltics as a first step in modernization, which, I think, is good news for those who appreciate quality,” Mr.Dzyubenko pointed out.
Meanwhile CEO of AM Baltics in Latvia Baiba Zūzena expressed that local team is inspired by challenges as the company is entering new era.
“We are happy to join Providence – the globally experienced player in telco and media field. Our demanding viewer and content user remain our focus. We rely on our experience in creating a great content and we will continue to shape up our content offering to make our viewer and content user happy. The investments will allow us to create new products and services which will deliver the best experience for the most demanding user of our analytical, informative and entertaining content,” stressed Zūzena.
As informed before, the deal initially was announced on March 17, 2017, as MTG agreed to sell its businesses in Estonia, Latvia and Lithuania. Transaction was performed via BITE Lithuania. Sale reflected MTG’s ongoing transformation from traditional national broadcaster into global digital entertainer, while Providence with this transaction highlighted continued commitment to investing in the Baltic region. As of the March closing of the deal was subject to regulatory approvals, which was received.
About Providence Equity Partners
Providence Equity Partners is premier global asset management firm with $50 billion in assets under management across complementary private equity and credit businesses. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 160 companies and is leading equity investment firm focused on the media, communication, education and information industries. Providence is headquartered in Providence, RI and also has offices in New York, London, Hong Kong, Singapore and New Delhi. Visit www.provequity.com for more information.