U.K.'s YooMedia to Acquire Spain's Fresh I.T. to Form Mirada

U.K. interactive media company YooMedia is to acquire a majority stake in Spain’s Fresh Interactive Technologies. The resulting entity will be branded “Mirada” pending board approval.

Fresh I.T. specializes in interactive digital television throughout Europe, including the development and creation of advertising formats in the sector. Their current services will complement YooMedia’s current offerings which include mobile marketing, interactive gaming and interactive TV amongst others.

YooMedia’s client roster has included major brands such as Virgin Media, Vodafone and Intel. Past projects have included the development of interactive advertising services for Channel 4 television and mobile ad campaigns for the likes of Budweiser and Pathé Films.

Neil Macdonald, Group Managing Director for YooMedia said he hopes the merger enables Mirada to expand its reach further into the European market.

“It was clear to us that we needed to look at strategic alternatives outside of the U.K.” he said. “Historically we have only ever generated revenue from within the U.K., but this deal will effectively turn us into an international company overnight.”

MacDonald will become Mirada’s Chief Operating Officer, and Fresh I.T.’s Chief Executive José-Luis Vazquez will become CEO of the new firm. Current Chairman of YooMedia, Michael Sinclair, will remain in that role for the merged company.

MacDonald confirmed substantial financial backing from Spanish investment group Kasei 2000 will be used to “sort out weaknesses in the YooMedia finance sheet” and invest in new products. Rafael Martin Sanz, a director of Kasei 2000, will join Mirada’s Board as a non-executive director.

Other than those executive and board changes, Macdonald insisted staffing will remain intact for the foreseeable future, and current office locations will be maintained.

A source familiar with the deal described it as a “route to survival” for YooMedia, and stated the company has been “bound by debt.”

MacDonald was reluctant to linger on past difficulties, however, stating, “The new backing will enable us to put our financial problems behind us, and the future is looking very exciting for the company.”