Cyfrowy Polsat has agreed to buy a 50% plus one share in Polish-registered Eleven Sports Network sp. z.o.o. from its parent company for €38 million.
The acquisition, which is being undertaken through Cyfrowy Polsat’s subsidiary Telewizja Polsat, will see the first tranche of the fee (€18 million) paid within two business days from the date of concluding the agreement and the second tranche (€20 million) adjusted to the net debts of Eleven Sports Network and paid when the conditions for its payment reserved in the agreement are satisfied. The payment of the second tranche should take place within four months of that for the first tranche, otherwise the seller will have the right to repurchase the shares from Telewizja Polsat.
In a statement, Cyfrowy Polsat notes that the acquisition will be financed from Telewizja Polsat’s own funds. It also says that the turnover of Eleven Sports Network has not exceeded €10 million in either of the two preceding financial years.
Eleven Sports Network has been active in Poland since 2015 and has a strong presence in the country’s TV market.
Commenting on the deal, Marc Watson, executive chairman and group CEO, Eleven Sports, said: “We are very proud of what we have achieved in under three years in Poland thanks to our fantastic local management team.
“The agreement of this partnership with Telewizja Polsat is testament to our outstanding financial and operational success to date and our potential for further dynamic growth and development. This is an extremely exciting time for Eleven Sports and we look forward to working towards the new opportunities that the agreement presents, locally in Poland and internationally on a global scale.”
Maciej Stec, member of the management board of Telewizja Polsat and Cyfrowy Polsat, added: “Sport has always been extremely important to our Group, our viewers and subscribers. For almost 20 years it has been one of the programming pillars of Telewizja Polsat and Cyfrowy Polsat. By having Polish fans at heart, we consistently develop our sports offer, launch new channels and bring important events to Poland. We have great experience in both production and execution, we cooperate with top commentators and experts, and we know what it is that viewers expect. Thanks to the strategic agreement with Eleven Sports we will strengthen our offer, make it even more appealing and continue to provide more real sports emotions”.
