Prime Focus to acquire US-based cloud services provider DAX for $9.1M
Mumbai-based visual entertainment services company Prime Focus Ltd, through its technology subsidiary Prime Focus Technologies (PFT), has signed a definitive agreement to acquire US-based DAX LLC, a provider of cloud-based production workflow and media asset management applications, for $9.1 million (Rs 56 crore) in a performance-linked transaction.
PFT through its US-based subsidiary will acquire all the assets of DAX for an upfront payment of Rs 4.8 crore and put Rs 8 crore towards working capital. The remaining amount will be paid over three years, using cash generated from its North American operations.
As a part of the deal, Patrick Macdonald-King, CEO of DAX, will become the president and be part of the executive leadership team at PFT responsible for North America.
This acquisition gives PFT ownership of DAX's patented technology and products, including the Primetime Emmy award winning Digital Dailies solution. DAX's marquee customers include major studios and broadcast networks 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.
The DAX platform, including Emmy Award-winning Digital Dailies, is a web-based application used by most major studios and television networks for collaboration and distribution management of content during the production process, and for marketing and distribution of final product and library assets.
The company is based in Culver City, California, close to the major Hollywood studios and networks it services.
"Our vision is to build the best enterprise platform for production on the cloud by taking a fresh look at media workflows through the lens of a studio that wants to efficiently collaborate across divisions with its entertainment content before, during and after the production phase. Digital Dailies is one of the first significant entry points to production on the cloud. PFT's CLEARTM Media ERP platform combined with DAX's team and products will accelerate the realisation of this vision," said Ramki Sankaranarayanan, founder and CEO, PFT.
"This marriage allows DAX to fulfil its vision and extends DAX's support of file-based workflows across the enterprise. PFT's arsenal of media-centric technology tools will drive the DAX product offering to a new level. For DAX customers, it's important to note that all tech support, client services, product design and account management will remain in Los Angeles, but also expand to the PFT offices in New York and London to better service the East Coast and Europe," said Patrick Macdonald-King.
In a separate disclosure, the firm also said the board of directors has considered and noted terms and conditions set out in the draft asset purchase agreement and related documents to be executed in connection with purchase of assets of Sample Digital Holdings LLC, a California-based limited liability company by PFT through its wholly-owned subsidiary DAX PFT.
(Edited by Joby Puthuparampil Johnson)