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(Sharecast News) - Time Out Group said on Wednesday that it had entered into a long-term franchise agreement with Vinyl Group for Time Out Australia, as part of the transition of its Australian media operations to the ASX-listed media business.
The AIM-traded global media and hospitality group said Vinyl would acquire the entire issued share capital of Print & Digital Publishing, the operator of Time Out Australia, and become the exclusive franchise partner for the Time Out brand in Australia.
The franchise agreement has an initial five-year term and will renew automatically each year thereafter, subject to customary termination provisions.
Time Out said it would receive ongoing royalty payments and annual minimum guaranteed payments under the agreement.
The group will continue to provide brand support, editorial standards and strategic guidance to support the Time Out brand in Australia.
The company said the transaction supported its strategy of partnering with established local operators in selected territories while generating recurring, capital-light revenue from the Time Out brand.
Completion is expected on 24 June, subject only to the expiry of a customary cooling-off period.
Rob Biagioni, chief executive officer of Time Out Media, said Australia remained an important territory for the group.
"Vinyl has a strong track record of growing premium media brands and connecting audiences with real-world experiences, making them the ideal partner for Time Out in Australia," he said.
Vinyl chief executive officer and executive director Josh Simons said the acquisition would bring "one of the world's most iconic culture brands" into the Vinyl Media portfolio and strengthen its position at the intersection of content and real-world experiences.
At 0807 BST, shares in Time Out Group were up 1.38% at 7.35p.
Reporting by Josh White for Sharecast.com.
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