DCD Media (LON:DCD) shares gained almost 50 per cent today after it unveiled a deal to expand its business into television post-production.
It is acquiring the assets of 'Sequence Post-Production Ltd'.
Sequence has previously worked for DCD and it has working relationships with a number of other TV production companies. Some of the company’s recent credits include Hollyoaks, Top Gear Live and the Red Bull Air Race, the company said.
DCD says the acquisition gives it an effective in-house post-production department which is capable of providing its TV production businesses with the highest level of post and channel delivery.
"We are delighted to bring Sequence's widely recognized creative talent and assets into the group in a move to boost our in-house production capabilities and deliver added benefit across our production operations," said DCD chief executive David Green.
Towards the end of last year Sequence ran into difficulties and it was unable to fund its business independently.
DCD is now providing financial backing and business infrastructure. As a result it has taken on the brand, the business assets and the firm’s senior management.
Subsequently DCD believes that Sequence can maintain its long-standing client and supplier relationships and continue with significant new deal negotiations. This will help bolster the new company for a solid future, it said.
“We have lacked capital investment and business support in the past, but will now benefit from an entire team of business specialists to backup our creative team,” said Ben Foakes, brand founder of Sequence Post-Production.
At 10:30 this morning DCD shares were up 2.38p, or 46 per cent, to trade at 7.5p each.