UPC Ireland has today announced that it has entered into an agreement with Doughty Hanson to acquire TV3.

TV3, the leading commercial broadcaster in Ireland, sold for a purchase price of €80 million,  with an additional contingent consideration of up to €7 million payable based on TV3 hitting certain targets.

The purchase price is expected to be substantially funded through existing liquidity.

On completion of the acquisition, TV3 will become part of Liberty Global.

TV3 is home to shows such as Xposé, Red Rock and Ireland AM

TV3 currently operates two free-to-air channels, the flagship TV3 channel and the youth-oriented 3e. In addition, it has TV3+1 on UPC and SKY, and 3PLAYER.

TV3 has an audience share of 12% in Ireland. In a statement released this afternoon, UPC said that in 2014, the TV3 Group achieved its best set of operating results since 2008.

Magnus Ternsjö, CEO of UPC Ireland, said: “We’re pleased to welcome TV3 to the Liberty Global family. The investment we are making today secures the long-term future of TV3. With its wide range of home-grown programming, TV3 holds a unique place in the heart of Irish viewers. This is a terrific addition to the TV service we offer - which is already the best in Ireland.”

This acquisition will be subject to regulatory approval from the Competition and Consumer Protection Commission and a separate media plurality test by the Irish Government. It is expected the transaction will be cleared in the coming months.