Wix is to pay a record £1bn to help improve its UK ad business, after being acquired by Facebook for £2.5bn.

The deal, which will see the company pay an initial cash dividend of £300m to investors and a further £600m over the next two years, is being led by chief executive Mark Jardine.

Mr Jardin says the sale of Wix will create opportunities for both the company and UK businesses to benefit from a stronger digital advertising platform.

The company’s UK head office will continue to be based in London.

Wix had recently been sold to Facebook for more than $2bn.