Visual entertainment services company, DNEG today entered into a memorandum of understanding to acquire Prime Focus Technologies (PFT), a leader in cloud-based software and artificial intelligence (AI) technology for the media and entertainment (M&E) industry. PFT, a subsidiary of DNEG’s parent company, Prime Focus Limited, has offices located across North America, the United Kingdom and India.
Upon conclusion of the proposed transaction, DNEG will add the media workflow and automation software suite, CLEAR, and purpose-built AI platform, CLEAR AI, which offer studios, broadcasters, brands and service providers transformational solutions to help manage content, video collaboration and automation in the content production and distribution process.
Acquiring the software-as-a-service business of PFT will advance DNEG’s status as an end-to-end solutions provider. The proposed transaction is inter alia subject to customary due diligence, finalization of the acquisition structure and valuation of the business, receipt of requisite corporate approvals (including from Prime Focus Limited, parent company of DNEG and PFT) and lender consents, and execution of the definitive agreements.
“DNEG is the entertainment industry’s go-to premium turnkey solutions provider thanks to organic market share expansion and key, strategic acquisitions, including today’s MOU with PFT,” said, Namit Malhotra, DNEG Chairman and CEO. He added, “In concert with DNEG’s deals for several lines of production and post-production services from Prime Focus Limited earlier this year, and our latest studio opening in Sydney, DNEG is truly a global, 24/7 force in the business. DNEG continues to offer unmatched quality, innovation and end-to-end capabilities to meet the visual effects, animation, pre- and post-production, distribution fulfillment services, and media asset management needs of all clients around the globe.”
“Prime Focus Technologies is thrilled to be joining DNEG and becoming part of the company’s global solutions offering for an impressive and growing array of clients and operations,” said, Ramki Sankaranarayanan, Founder and CEO of Prime Focus Technologies. He added, “PFT is committed to offering customers digital transformation solutions that help automate the content supply chain. This transaction will be a positive step forward for both our existing customers and for prospective clients. The transaction with DNEG will enhance PFT’s financial strength and stability and help in building longer-term relationships with our clients. DNEG provides PFT a halo of credibility and success, with its strong studio partnerships and relationships that we can leverage into growth opportunities in the future.”
PFT’s business includes the intellectual property of the company, and its 1,700 employees (including approximately 300 software engineers) located across North America, the United Kingdom and India. Acquisition of the aforesaid business will allow DNEG to extend its client service offering, to provide an industry-leading, end-to-end and integrated set of services from pre-production to distribution fulfillment.
Clients associated with PFT’s business include major media and entertainment companies like Amazon, BCCI / IPL, Channel 4, Lionsgate, Netflix, Paramount, PBS, Sinclair Broadcast Network, Star TV / Disney, Tata Play and Warner Media Discovery.
Malhotra continued, “Bringing PFT’s business under the DNEG umbrella is the next logical step for our company to further develop its expertise across the content lifecycle, through post-production, content management and distribution. Consequently, DNEG has secured another avenue for future growth and an ability to innovate faster and provide more value to clients. Together, we will realize adjacent growth opportunities and more deeply align DNEG with our customer base for longer term collaboration and more transformative projects in the future.”
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