The Mumbai-based visual effects and post-production company Prime Focus is acquiring two US-based post-production and visual effects firms—Post Logic Studios and Frantic Films.
These acquisitions are aimed at increasing the global footprint of Prime Focus as Post Logic Studios has offices in Hollywood and New York and Frantic Films has operations in Los Angeles, Winnipeg and Vancouver. The deals are all-cash and the company plans to raise USD 55 million through FCCB (foreign currency convertible bond) issuance to fund these acquisitions.
"The Prime Focus Group is close to reaching final agreement to acquire Post Logic Studios and Frantic Films for a total consideration of USD 43 million, pending finalisation of deal structure and applicable regulatory and statutory approvals," the company stated in a release.
With Prime Focus having six visual effects and post-production facilities across India and four facilities in London, the acquisition will allow it access to 55,000 square feet of prime real estate and a talent pool of 200 staff members.
With these acquisitions, Prime Focus will also gain access to the R&D division of Frantic Films, which is engaged in developing and marketing visual effects software solutions. Frantic Films is stated to have worked with top Hollywood films, including Fantastic Four, The Rise of the Silver Surfer, Grindhouse, Superman Returns, X-Men 3, Poseidon, Mr. Miagorium's Wonder Emporium and Journey 3-D.
The company intends to continue operations of both the acquired firms as independent entities, thus providing them with access to a talent pool of 400 visual effects professionals worldwide.
The acquisitions will provide Prime Focus a three-way pipeline of work and talent pool, covering India, the UK and US. Earlier in September this year, Prime Focus had also bought out the post-production facilities of UTV.
Industry analysts are of the view that the acquisitions of the two US firms fit into the company’s broad plans of scaling for larger projects. |
