New Frontier Media Inc. said Tuesday that it has acquired MRG Entertainment Inc. and its affiliated companies.
Under the terms of the deal, New Frontier will pay $15 million in cash and $5 million of its common stock, as well as a three-year performance incentive of $2 million. The deal is expected to close by the end of the week, New Frontier said.
The adult-entertainment distributor said the acquisition of the producer and distributor of mainstream films and soft erotic features and events “expands New Frontier Media's portfolio to the rapidly growing market for softer, erotic content, as well as to the market for erotic event-type content,” according to CEO Michael Weiner.
He added, “The combination also gives us a strong, established beachhead in a range of international markets and provides us with a library of content that we can profitably monetize through our extensive distribution networks.”
