Wales-based TV programme producer Boomerang Plus is paying an initial £1.1m for Indus Films.
A further £1.295m becomes payable if Indus achieves profit targets over the next three years. Indus reported a profit of £209,000 on revenues of £5.32m in the year to June 2008.
The acquisition should be earnings enhancing in the year to May 2010.
At 80p a share, Boomerang Plus is valued at £7.13m. Despite the recent recovery in the share price it is still less than half the level it was one year ago.
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