(Reuters) - Britain’s ITV Plc (ITV.L) said it will buy a 61.5 percent stake in U.S.-based Gurney Productions, which makes reality programs, for $40 million to boost its production business in the United States.
“Our studios business is already showing strong organic growth and the acquisition of Gurney is an important step forward as we continue to expand our international production capability,” ITV Chief Executive Adam Crozier said in a statement.
Britain’s largest free-to-air commercial broadcaster would have the option to buy the remaining 38.5 percent stake in Gurney three years after the deal through the fifth year.
ITV shares closed at 106.6 pence on the London Stock Exchange on Friday.
Reporting by Monika Shinghal in Bangalore; Editing by Joyjeet Das