An Australian consortium has agreed to buy BBC Broadcast, the public broadcaster’s digital media distributor, for £166 million.

Investment fund Macquarie Capital Alliance Group and Macquarie Bank, Australia’s largest investment bank, will own 65 percent and 35 per cent respectively, via their Creative Broadcast Services consortium.

On the Sydney stock exchange, shares in Macquarie Capital, which led a consortium last month in buying European telephone directories business YBR Group, rose as much as 6 per cent to A$1.95.

"Creative Broadcast Services made the BBC a great offer and showed real capabilities in managing a contractual long-term partnership with a commitment to growing and investing in the business," John Smith, the BBC's chief operating officer, said.

BBC Broadcast’s "playout" facilities convert content into a datastream ready for transmission. It also offers on-air promotions, subtitling, electronic programme guides and other services. It is widely expected that BBC Boradcast will continue to supply services to the BBC, but will also seek business outside the Corporation.

Other bidders for the deal include Apax, Thomson/Technicolor and Exponent Private Equity.

Pam Masters, the managing director of BBC Broadcast, said: "The Board and I have built this company from an internal BBC department through incorporation and three successful years of trading under BBC ownership. It is now time for the business to flourish under new ownership with increased investment. We feel confident the decision is right for our business and our staff, and I look forward to working with them to fulfil the potential of this fantastic business."

Completion of the sale is subject to approval from Tessa Jowell, the Secretary of State for Culture, Media and Sport.

The BBC put the division up for sale in December as part of one of the biggest shake-ups in its history. It is also looking to spin off several other units, in addition to sweeping across-the-board job cuts.

Macquarie said that it will honour a one-year moratorium on compulsory job cuts.

BBC unions staged a one-day walk-out in May to protest against Director General Mark Thompson’s proposals. They agreed to call off a second 48-hour strike after management offered the one-year moratorium on compulsory redundancies and to protect staff conditions at BBC Broadcast.

"There is no intention for any staff redundancies during the one-year moratorium. Our focus is on growing the business," said a spokeswoman for Macquarie Capital Alliance, which Macquarie Bank set up and floated this year, retaining a 10 per cent stake.

The consortium said BBC Broadcast’s senior management team would be retained under the terms of the acquisition agreement.

Michael Cook, CEO of Macquarie Capital Alliance Group, said: "BBC Broadcast has state-of-the-art facilities and services delivered by very talented people and is in a strong position to take advantage of growing opportunities in Europe as well as developing demand from new communication media.

"The BBC Broadcast management team has extensive experience and strong industry relationships across all aspects of the business."

BBC Broadcast had revenues of £109 million in the year to end-March -- 91 per cent from the BBC -- and its contracted revenue to 2015 from the BBC was expected to be more than £500 million.

The price valued BBC Broadcast at 11.6 times earnings before interest, tax, depreciation and amortisation, after adjusting for one-off items, for the year to March 31, the consortium said.

Macquarie Capital Chief Executive Michael Cook said BBC Broadcast was in a strong position to grow, develop demand from new communication media and make stable and predictable revenues.

The purchase was expected to be completed by the end of July and would be funded by both debt and equity from the consortium.

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