Beyond International to buy Q’s digital business for $3.25m
Local production house Beyond International plans to buy Q Group’s digital marketing operations for $3.25 million.
The assets will form a new digital division within Beyond, which will be headed by Q’s current chief executive Jon Ostler.
Beyond produces a slate of successful television programs, including the popular MythBusters series, and posted a 14 per cent rise in net profit to $3.99 million over the December half-year.
Beyond chief executive Mikael Borglund said the company has been expanding its digital capabilities.
“This proposed acquisition will provide Beyond with access to a diverse range of digital expertise, IP and assets covering digital strategy, creative, development, marketing and media,” he said in a statement.
The sale, which will require the approval of Q’s shareholders, will end a period of turmoil for the digital marketing and advertising company.
In a letter to shareholders, Q’s executive chairman Paul Choiselat said it had been unable to generate positive cash flows over the past two years due to difficult trading conditions.
“After an internal review of the business’s future prospects, the directors considered and accepted the offer for the assets of the group’s business from an independent third party,” he said.
The $3.25 million sale price is the maximum payable and includes performance hurdles related to earnings targets. If the sale proceeds, Q plans to pursue new business opportunities.