South Korea’s Spackman Entertainment Group Limited has agreed to acquire the entire issued and paid-up share capital of talent firm Constellation Agency for S$16.6 million ($12.3 million).
According to the share purchase agreement, Spackman will issue about 144.8 million new shares at S$0.115 apiece. The purchase consideration takes into account Constellation’s unaudited net profit of $1.2 million, and its unaudited net asset value of $3.6 million for the period from the date of its incorporation to 30 November 2017, Spackman said.
“The Group views that the acquisition of Constellation Agency will allow it to better leverage on the unique marketing expertise and talent management platform to deliver top quality integrated content production to its targeted audience. The Group also believes that this is a strategic fit to the Company’s existing operations as it develops a more consistent and stable revenue in its business diversification efforts,” the Spackman management team said in its statement.
Constellation Agency is primarily involved in the business of representing and advising Korean artists in overseas markets. It acts as an agent and advisor to a selective group of major Korean artists in entertainment content projects, events, and commercial endorsements in overseas markets, namely, in Greater China, Southeast Asia, and the U.S.
The firm owns The P Factory Co Ltd, a marketing solutions provider specializing in event and branded content production. Constellation Agency also owns Platform Media Group Co Ltd (PMG), a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements, and branded entertainment.
In March 2017, Spackman completed the acquisition of a 100 per cent stake in Frame Pictures, a movie and drama equipment leasing business in Korea. Later in October, the company bought the entire common voting shares of Take Pictures Pte. Ltd, another South Korean startup motion picture production company founded by veteran movie producer Song Dae-chan.
Spackman was founded by Charles Spackman in 2014. It is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea. In addition to its film business, the company also make investments into entertainment companies and film funds that can financially and strategically complement its existing core operations.