CCF is pleased to announce the sale of Cycling TV ('CTV'), an internet television channel for the cycling community, to Jump TV (‘JTV’), a leading broadcaster of television over the internet whose stock is quoted on the AIM of the LSE as well as the Toronto Stock Exchange. The transaction was completed on 9 August 2007 for a total consideration of US$11.74 million in cash and stock which includes an earn-out.
CCF originally invested £75,000 alongside angel investors in April 2006 and invested an additional £215,000 as part of a funding round in January 2007. CCF’s shareholding in CTV was approximately 22%. CCF achieved a minimum IRR of 55%, potentially rising to 110% (subject to the earn-out terms), on its investment in CTV.
Fred Mendelsohn, chairman of CCF, commented, “I am delighted that the fund has helped Cycling TV to grow into a viable business, which Jump TV will be able to further develop and enhance. We wish Simon Brydon and his team every continued success”.
The sale of Cycling TV marks the first exit for CCF, which was founded in March 2005 to invest in early-stage London-based business operating in the creative and media sector. The sole limited partner investor in CCF is the London Development Agency.
Advisers on the transaction included Zatman & Co on behalf of CCF.