US media group iMedia Brands has signed a purchase agreement to acquire German teleshopping channel 1-2-3.tv from German investment company Arcus Capital for an enterprise value of around $95 million.
The deal includes an earn-out potential for an additional $50 million based upon achievement of certain target revenues, according to iMedia. 1-2-3.tv’s 2020 net sales were $184 million.
The acquisition is subject to customary closing conditions, including German governmental and Austrian merger control approvals, as well as a financing condition. iMedia expects to close the transaction in Q4 2021.
1-2-3.tv is an interactive media company offering Dutch auction style live and automated auctions, reaching consumers via its 24/7 TV channel available in over 40 million German and Austrian households and via its online, mobile and digital platforms.
“We believe gamification of consumers’ emotion-based shopping experience is the ultimate disruption to the status quo,” said Tim Peterman, CEO of iMedia. “1-2-3.tv’s entrepreneurial team with their proprietary technologies are experts in this shopping disruption and iMedia is humbled by the trust of 123tv’s primary shareholder, Stefan Eishold of Arcus Capital AG, that enables iMedia to help 1-2-3.tv accelerate its growth plan, which we believe can include disrupting digital shopping marketplaces here in the United States.”
Stefan Eishold, CEO of Arcus Capital, added: “We at Arcus and our partners, BE Beteiligungen and IRIS Capital, would like to thank the 1-2-3.tv team for the incredibly successful cooperation over the past five years, in which we have transformed the business into an omnichannel sales platform. It was very important to us that we hand over the company into good hands. With Tim and his team at iMedia we have found the best possible new owner.”
GCA Altium acted as financial advisor for Arcus Capital and the other selling shareholders.
iMedia Brands is an interactive media company that owns TV channels, consumer brands and media commerce services. Its TV brands are ShopHQ, ShopBulldogTV, ShopHQHealth and LaVenta.
