A London-based intellectual property company has continued its plan to expand its presence in China’s interactive TV market by completing a deal worth at least £2 million.

A London-based intellectual property company has continued its plan to expand its presence in China’s interactive TV market by completing a deal worth at least £2 million.

Galleon Holdings plc has bought Changsha High and New Technology Industrial Development Zone Yunbo Information Technology (Yunbo), a provider of wireless messaging services to broadcasters in China.

On completion £1.54 million (US$3 million) was paid in cash and shares with £510,000 due at the end of May. A further payment is expected depending on Yunbo’s performance in the year to January 2009, which is estimated to be between four and seven times EBITDA.

Galleon chief executive Stephen Green said the acquisition will expand the group’s entertainment services.

This is Galleon’s second acquisition in its strategy of becoming a major player in China’s interactive TV industry, following its takeover in October of Phoenix Investment Global, a provider of interactive entertainment services.

Yunbo provides the mobile billing service product that Phoenix supplies to broadcasters. The acquisition allows Phoenix to retain more money from the collection of the wireless short-messaging services (SMS) and mobile phone revenues generated by Phoenix’s existing activities.

Established in 2000, Yunbo generates revenue from providing SMS and multimedia messaging (MMS) to broadcasters in China. Its clients include China Tobacco Hunan Industrial Corporation, Hunan Media Group, Shenzhen Wireless Mobile Science &Tech and Da Guo Music Recording Studio.