A European entertainment network has acquired Surrey-based digital video distribution company Yospace for £25.9m.

The Luxemburg-based group made the acquisition to deliver better-targeted advertising across premium streaming environments.

The move is part of a wider drive to boost its digital capabilities.

Yospace serves major media owners across Europe, the US and Asia, including BT Sport, ITV, TV4 and Seven West Media. Its CEO Tim Sewell and CTO David Springall will continue to manage the day-to-day operations, reporting to its board.

RTL will appoint three of the five members of Yospace’s board.

"First, we gain a competitive, fully integrated and profitable solution which is key to further grow our ad-tech business,” said Bert Habets, CEO of RTL Group.

“Our goal is to continue expanding SpotX into a leading, independent monetisation platform for broadcasters, video on demand services and publishers.”

"Secondly, this acquisition will also help build local streaming champions in the markets where we have strong families of channels. The Yospace technology makes advertising on streaming services more personal, which means a better consumer experience for superior monetisation of our premium advertising inventory."