Global Radio has signed a new two year contract with UBC Media Group to supply traffic and travel bulletins for the entire Global Radio group, via a deal with Trafficlink.
The deal sees all of Global Radio's stations, and significantly for the very first time London's Capital Radio join Unique's 'Network Drive' syndication network. Beginning on 17th November, the deal is for two years and means UBC will now supply traffic and travel news to all of the 71 stations owned by Global Radio.
In a separate but related deal Bauer, on behalf of its 35 UK radio stations, have also signed a two year extension of their current deal with Unique for their supply of traffic and travel, and inclusion within the 'Network Drive' syndication network.
UBC is currently progressing negotiations with NASDAQ-listed Global Traffic Network, Inc. ('GTN') to agree the terms of a Sale and Purchase Agreement for the sale of the Commercial Division. It is intended that an initial £11 million will be paid on completion of the transaction, with provisions for an earn-out which has the potential to deliver additional payments of up to £5.5 million depending upon the Commercial Division achieving certain turnover targets in the 12 months following its sale.
Simon Cole, CEO of UBC commented: "We have had a successful working relationship with Global Radio since they purchased Chrysalis Radio last year and are really pleased to be moving it to the next level. Global's acquisition of GCap, and it's subsequent decision to extend our syndication deal for Traffic and Travel is a very important step for us. Although the advertising market remains difficult, the additional commercial inventory represented by this deal should benefit us when the market returns.
"The signing of the entire Global Radio Network and the new deal with Bauer mean that our commercial business is enhanced and secured for the next two years. We still believe, however, that the proposed transaction with GTN represents an opportunity for the business to be scaled globally and returns value for our shareholders".