MTG closes deal for channels group Trace

The Modern Times Group has closed its deal for Trace, the entertainment channels operator.

The deal gives Sweden-listed broadcast group MTG 75% of Trace, which operates channels including Trace Sport Stars and Trace Urban around the world. It is particularly strong in Africa, a region in which MTG is keen to expand.

MTG will pay about €30 million (US$41 million) for Trace – with the existing management at the youth-skewed channels operator holding the remainder.

Trace co-founder Olivier Laouchez will remain as company chairman and CEO following the closing of the deal. MTG will consolidate Trace results from July and they will be reported under the ‘pay TV and emerging markets’ section of its results.

Numerous media companies looked at Trace while it was on the block. TBI was first to report, in early February, that MTG was the one that would acquire the company.