ITV has bought Boom Supervisory Limited, the holding group of production company Twofour for £55m, as part of its ongoing strategy to build its original content business.
Plymouth-based Twofour has produced a number of hit shows for Channel 4 including Educating Yorkshire, The Jump and Posh Pawn and delivered £5m in earnings before interest, tax, depreciation and amortization last year.
ITV's managing director Kevin Lygo commented:
Great creative talent, fantastic content and brilliant production expertise are central to ITV Studios' strategy, so I'm delighted that the Twofour Group is joining our family of production companies as we continue to boost ITV Studios' growth in the UK and internationally.
The broadcaster paid £55m for 75 per cent of the group from majority shareholder LDC - the private equity firm of Lloyds Banking Group - and has a put and call option for the remaining 25 per cent.
As part of the deal, ITV also acquired Twofour's 51 per cent stake of drama producer Mainstreet Pictures and a put and call option on the remaining 49 per cent that can be exercised between 2018 and 2023.
After recording strong profits of £712m in 2014, ITV has set about snapping up a number of production houses including The Voice producer Talpa Media and Mammoth Screen, producers of Poldark.
Shares in the broadcaster remained relatively flat on the news.