REG - ITV PLC - ITV announces investment in Strike

ITVAnnouncement

22/05/2024 12:15

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RNS Number : 4896P  ITV PLC  22 May 2024

ITV announces investment in Strike

London, 22/05/24

ITV today announces its latest Media for Equity investment, and its first of
2024, in online estate agent Strike, trading as Purplebricks.

As part of ITV Adventures Invest, its Media for Equity investment fund, ITV
has agreed to subscribe for £1.5 million convertible loan notes in Strike
Limited, with the option for an additional two tranches of £1.5 million each,
in return for advertising inventory across ITV's channels and ITVX.

Founded in 2012, Purplebricks is the UK's most popular estate agency. By
leveraging technology and the expertise of its people, Purplebricks makes the
process of buying and selling homes cheaper, less stressful and more
transparent. Acquired by Strike in 2023, Purplebricks continues to disrupt the
property industry by allowing customers to sell their homes for free.

ITV's investment in Strike adds to the Media for Equity portfolio, building on
the diverse range of investments it has previously made, which in the last
twelve months have included pet health and wellness company PitPat, pain
relief brand Flarin and plant-based meat business THIS.

Sheena Amin, Director of ITV AdVentures, said: "I'm delighted to be completing
our first media for equity investment of the year into Strike. The powerful
combination of Strike's consumer proposition which allows homeowners to sell
their house for free together with the Purplebricks brand, makes the business
a great fit for a media for equity investment. We believe that the company is
well positioned to continue their disruption of the estate agent market and we
aim to help build both their brand awareness and market share by using the
power of TV to bring their message to millions of viewers."

Sam Mitchell, CEO of the Purplebricks Group, said: "This is an exciting moment
for Purplebricks as we partner with ITV in a significant Media for Equity
deal. The process for buying and selling properties hasn't changed in almost
200 years, but thanks to Purplebricks, customers are now able to sell their
home for free, with no hidden costs. ITV will help us take that message to
homes across Britain as we continue to build on the strong momentum of the
past six months."

Following ITV's investment, the new Purplebricks TV advertising campaign will
kick off nationally in Summer 2024.

Launched in 2021, ITV AdVentures Invest is a Media for Equity programme which
sees ITV take minority stakes in early stage digital and direct-to-consumer
businesses, alongside venture capital investment, in return for advertising
inventory across ITV's range of market-leading channels and ITVX. The
initiative represents an innovative opportunity for consumer businesses
seeking to build scale through TV advertising, alongside a strategic media
partner. ITV's diverse portfolio of successful Media for Equity investments
include location app what3words, online menswear brand Spoke, wellness brand
Feel, Europe's biggest new car buying marketplace Carwow and architectural
tech company Resi.

 

NOTES:

 

1.   The convertible loan will be held at its fair value on ITV's balance
sheet and upon conversion, the investment will not be consolidated.

2.   Each tranche of the loan notes will become convertible at the time of
future qualifying financing rounds, on a change of control or at the latest
backstop date of 31 December 2025. The conversion price for each tranche will
be calculated at a discount to the company valuation at the time of any future
financing round. If the conversion takes place at the backstop date then the
conversion price will be at a discount to fair market value.

3.   In the audited accounts of Strike Limited for the year ended 31 March
2023, reported gross assets were £3.4m and the net loss was £19.7m. The
Company's registered office is in Colchester and has over 900 employees.

4.   This disclosure is being made in accordance with listing rule 10.4.1 as
the parties have agreed to certain customary minority rights and obligations
upon conversion of the loan notes, including, but not limited to drag
obligations.

 

 

For further details, please contact:

 Investor Relations
 Pippa Foulds           +44 7778 031097

 Faye Dipnarine         +44 20 7157 6581

 Media Relations

 Paul Moore             +44 7860 794444

 Laura Wootton          +44 7917 862293

 

 

LEI for ITV plc: ZLECI7ED2QMWFGYCXZ59

 

 

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