PFT DAX

Update: Prime Focus has informed BSE (pdf) that it has completed the acquisition of DAX.

EarlierPrime Focus Technologies (PFT), the technology subsidiary of the BSE-listed media & entertainment service provider Prime Focus has signed a definitive agreement to acquire the California-based DAX for a base consideration of $9.1 million (around Rs 56 crore) payable over three years.

The company mentions this is a performance-linked agreement wherein PFT will be acquiring all the assets of DAX through its US subsidiary for an upfront payment with the balance payable over 3 years by the cash generated from the company’s North American operations. PFT is making an upfront payment of Rs 4.8 crore and investing Rs 8 crore towards working capital, according to The Economic Times. The transaction is expected to close in the coming weeks.

Post acquisition, PFT will own DAX’s technology and products including its television production solution Digital Dailies. These solutions will be combined with Prime Focus’ cloud-enabled media ERP solution CLEAR to offer enterprise media ERP solutions to broadcasters and studios. PFT claims that broadcast networks currently use CLEAR to manage 200 TV shows on daily basis and over 350,000 hours of content.

Clientele: PFT will also get access to DAX’s clientele which includes studios and broadcast networks like Warner Bros. Television Studios, CBS Television Studios, 20th Century Fox Television Studios, Relativity Media, Legendary Pictures, Fox Television Studios, A&E, Showtime, Starz Media and Lionsgate along with several other independent production & distribution companies.

PFT to expand operations in North America: Besides this, PFT will be able to expand its operations in North America region with DAX CEO Patrick Macdonald-King assuming the role of PFT’s president for North America. He will also be part of PFT’s North America leadership team while DAX’s 50-member team will be joining PFT. Macdonald-King notes that while its tech support, client services, product design and account management will continue to remain in Los Angeles, PFT will start offering similar services in its New York and London offices to cater to the East Coast and European market.

PFT currently has offices in Mumbai, Bangalore, London, New York and California and has clients like Bloomberg, Disney, Warner Bros., News Corporation-owned STAR TV, EROS International, Viacom 18, SONY MSM, BCCI (Board of Control for Cricket in India), IPL (Indian Premiere League), Zee TV, Hindustan Unilever Limited, The Associated Press, A & E TV Network and Schawk!

In April 2012, Sony Music India had tied up with PFT to move its video content operations to the cloud by using PFT’s‘ CLEAR platform. The company was expected to move content like music videos, documentaries, promos, full length movies and its artwork library to the platform, following which Sony Music India would be able to supply, prepare and deliver content through the cloud, thereby reducing its content distribution costs and increasing its revenue streams by offering content on different video sharing sites and apps.

Also readSTAR India Moves Content To The Cloud To Enable Digital Delivery: Report