DNEG, a visual entertainment services company, has 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 Prime Focus Ltd, the parent company of DNEG, has offices 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.
After the proposed transaction is completed, DNEG will add the CLEAR media workflow and automation software suite and the CLEAR AI platform, both of which provide studios, broadcasters, brands, and service providers with solutions to help manage content, automate video collaboration, and streamline the production and distribution of content.
The company said in a statement that by acquiring PFT’s software-as-a-service division, DNEG will strengthen its position as an end-to-end solutions provider and enable its expansion into media tech and distribution services, including fulfilment, localization, and marketing. This will also enable DNEG’s global M&E client base to realize the strategic, operational, and financial benefits of managing the entire lifecycle of their content with one trusted partner.
The proposed transaction is subject to the customary due diligence, completion of the acquisition structure and business valuation, receipt of requisite corporate approvals (including from Prime Focus Ltd, the parent company of DNEG and PFT), lender consents, and execution of the definitive agreements, among other things.
Speaking about the transaction, DNEG Chairman and CEO Namit Malhotra said, “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. 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.”
“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.