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Cinedigm to acquire New Video
 
Indiantelevision.com Team

( 20 April 2012 2:02 pm)
 

MUMBAI: Global leader in digital cinema Cinedigm Digital Cinema Corp. will acquire leading entertainment distributor New Video Group, Inc. (New Video), the largest worldwide digital aggregator of independent content and leading distributor of quality entertainment.

The acquisition of New Video will cost Cinedigm an upfront consideration of $14 million plus additional earn-out potential of up to $6 million over three years tied to the future financial results of the Cinedigm Entertainment Group.

The upfront consideration will be paid with $10 million of cash from Cinedigm's balance sheet and $4 million of Cinedigm stock issued at the trailing 10 day volume weighted average price.

The acquisition is expected to close by 20 April.

Said Cinedigm Chairman and CEO Chris McGurk, "Cinedigm is now a fully integrated distributor of independent films and specialty content. Over the past year, we have analyzed many companies in the digital distribution space for home and mobile entertainment and determined that New Video is the best partner for us."

Cinedigm's acquisition of New Video will create a new full service end-to-end digital releasing studio that will enable the company to acquire and distribute independent films and specialty content both theatrically and through digital, mobile and home media platforms.

This acquisition builds upon the strategic acquisition and distribution partnership for independent films formed in January between Cinedigm and New Video. Already, the joint venture has acquired two award-winning films at Sundance and SXSW, The Invisible War and Citadel, which are planned for release in June and September respectively and today also announced the acquisition of a third highly regarded independent film, In Our Nature.

Along with this acquisition, Cinedigm has also announced an underwritten public equity offering of common stock with B. Riley & Co., LLC acting as sole book-running manager and Merriman Capital acting as co-manager of the offering.
 
 
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