Galleon Holdings Plc, the AIM-listed entertainment media company that develops and produces multi-platform properties with a focus on the emerging markets, is set to acquire a 19 per cent stake in Dragonfruit Entertainment in a cash-and-shares deal.

Galleon Holdings Plc, the AIM-listed entertainment media company that develops and produces multi-platform properties with a focus on the emerging markets, is set to acquire a 19 per cent stake in Dragonfruit Entertainment in a cash-and-shares deal.

On completion of the deal, Galleon will pay a total of £252,000 for the minority stake of the Atlanta-based subsidiary of Dragonfruit Studios. The consideration will be satisfied with a cash payment of $250,000 (£180,000) and 426,000 new ordinary shares at 1p each.

Galleon develops entertainment formats for children, families and young adults, which include Super Soccer Star, Skunk Fu! and Apollo’s Pad. The formats are designed to establish a “direct, interactive relationship with viewers”, the company said.

The transaction will give Galleon a presence in the US as well as expertise and further expansion opportunities. Dragonfruit Studios was launched in 2008 by Michael Koziol and Melissa Honabach.

Commenting on the deal, Koziol said: “Galleon and Dragonfruit Studios have aligned interests, compatible styles and similar cultures. We are excited about this expansion of our corporate relationship and using it as the platform to bring new concepts in multi-platform content and branded entertainment to the global market.”

Stephen Green, CEO of Galleon Holdings, said: “Michael and Melissa have a proven track record of building successful businesses. Their knowledge of the North American market, digital media expertise and network of contacts are highly complementary to our own and we are confident that this partnership will help Galleon expand its entertainment brands more rapidly into the US and internationally.”