UBC Media Group, which provides traffic and travel news to radio stations, has sold its commercial division to US company Global Traffic Network (GTN) for an initial £9m in cash.
The deal will see the entire UBC commercial team transfer to the Nasdaq-listed GTN.
Under the terms of the agreement, UBC will receive a further £5.5m if 2009 revenue targets are met.
UBC’s commercial division supplies traffic and travel news to over 200 commercial radio stations in the UK and entertainment news to over 100.
In October, the company signed a two-year deal with Global Radio to supply traffic and travel bulletins for the entire Global Radio group including the Heart Network and 95.8 Capital FM.
Last year it signed an agreement with the then Virgin Radio to supply traffic and travel news and sell airtime on behalf of the station .
Simon Cole, chief executive of UBC, says: “I’m hugely grateful to every member of the team for the contribution they have made to delivering value for UBC’s shareholders and delighted to be working with them and Global Traffic Network to take the business to a new level.
“The U.K. radio market is developing very fast as consolidation takes hold and I am very confident that GTN can look forward to maintaining and building the strong business we have developed here”.