Mumbai and Los Angeles — Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus, has signed a definitive agreement to acquire DAX , a provider of cloud-based production workflow and media asset management applications to the entertainment industry for a base consideration of US$ 9.1 million in a uniquely structured performance linked transaction.
PFT through its US subsidiary will acquire all the assets of DAX for an upfront payment with balance payable over three years such that cash flows from the North American operations will support the payment.
· PFT secures ownership of Emmy award-winning digital dailies solution
· The PFT-DAX combination offers a dynamic stack of enterprise-class Media ERP solutions to broadcasters and studios
· This accelerates PFT’s strategic expansion in North America and the vision to virtualize the content supply chain before, during and after the production phase
· Patrick Macdonald-King (current CEO of DAX) to be president responsible for North America. All DAX related tech support, client services, product design and account management to remain in Los Angeles
· Significant potential to monetize marquee customer base , which includes 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.
“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,” said Ramki Sankaranarayanan, founder and CEO, PFT. “Digital dailies is one of the first significant entry points to production on the cloud. PFT’s Clear Media ERP platform combined with DAX’s team and products will accelerate the realization of this vision.”
“PFT has tremendous resources at its disposal,” said Patrick Macdonald-King. “Beginning with its 250-person strong R&D and product development team dedicated to a single platform with rare media-centric IT skills. This marriage allows DAX to fulfill 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.”
The transaction is subject to customary closing conditions and is expected to close in the coming weeks. PFT and DAX will be exhibiting together at the upcoming NAB Show 2014, and will showcase a number of Clear and DAX product releases.
Main photo caption: DAX is used as a dailies solution on AMC’s Mad Men.