Diageo parts company with digital arm

Diageo has sold off Translucis, its on-trade digital media network.

Avanti, a broadband specialist with a strong presence in the retail sector, has acquired the business in the hope of becoming a leading player in the emerging field of retail television.

The deal will see Avanti taking on Translucis' Magnix technology platform and 'Magnetic' in-bar TV channel. Translucis currently operates a base of 250 in-bar plasma screens, broadcasting entertainment and advertising content to over 1.3 million 18-24 year old viewers each week.

Graham Sumeray, managing director, New Business Ventures, Diageo, said: "This deal represents a successful exit for New Business Ventures and marks an exciting new stage in the development of Translucis.

As the company has developed it has become important for it to move out of the Diageo stable in order to enable it grow to the next level. The synergies between Avanti and Translucis are clear and I am excited to see how the joint entity grows in the future."

David Williams, managing director of Avanti Communications, added: "The combination of Avanti's ConnectTV and Translucis will create a leading force in the growing area of retail television - whether in-bar entertainment networks such as Magnetic or ConnectTV's bespoke retail TV networks.

Through this acquisition we will gain access to Translucis' powerful media sales capability and content library and established customer base as well as gaining significant economies of scale. I am very excited about our prospects in the UK market from an existing position of market leadership."

At the same time, Avanti announced that it had recruited John Brackenbury, of Pubmaster, as its chairman.