The Vista Group International Ltd (ASX: VGL) share price has jumped higher this afternoon after announcing its latest acquisition.
What did the Vista announce today?
Vista shares have been rocketing higher today following an investment update.
The Aussie film technology group has entered into an agreement to acquire a further 14.5% of Vista Entertainment Solutions (Shanghai) Ltd ('Vista China').
Vista will purchase the shares from a fellow shareholder, WePiao, and take a 62% controlling stake.
The Vista Group share price has surged 2.99% higher on the ASX to $3.45 per share.
Group CEO Kimbal Riley said the group is "delighted" to increase its stake in Vista China. China is a lucrative market with "12 of the world's top 20 cinema exhibitor chains" operating in the country.
"Vista China has more than doubled its revenue since the venture with WePiao was establish and the company is anticipated to be EBITDA positive in 2020", added Mr Riley.
The transaction values Vista China at RMB500 million (A$103.6 million) and is conditional on regulatory approvals. The group expects to receive these clearances in the second half of 2020.
What does this mean for the Vista Group share price?
The Vista Group share price looks set to close 3% higher on Friday.
This would bring Vista within touching distance of its $3.50 per share valuation where it started the year.
Vista shares plummeted lower in late August after a disappointing half-year result.
The film technology group reported 19% revenue growth and 16% EBITDA growth on the prior corresponding period.
But even a $6.2 million profit before tax couldn't please investors as the Vista Group share price plummeted 28.93% lower in one day back in late August.
That was largely due to the group's first-half net profit after tax slumping 23% lower as investors headed for the exit.
Vista Group International's shares have struggled to climb higher following that half-year result and remain at $3.45 per share after today's surge.
