DNEG, a visual entertainment services company, has entered into a memorandum of understanding to acquire Prime Focus Technologies (PFT), that works to provide 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 Ltd, has offices located across North America, the United Kingdom and India.
DNEG projects on behalf of its Hollywood and global studio and production company partners include Fast X (May 2023), The Little Mermaid (May 2023), The Flash (June 2023), among others.
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 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, enabling its expansion into media tech and distribution services, including fulfilment, localization and marketing, and allowing DNEG’s worldwide M&E client base to realize the financial, operational, and strategic benefits of managing the entire lifecycle of their content with one trusted partner, the company said in a statement.
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 Ltd, parent company of DNEG and PFT) and lender consents, and execution of the definitive agreements.
“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,” Ramki Sankaranarayanan, founder and CEO of Prime Focus Technologies said in a statement. “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,” he added.
