MUMBAI: Prime Focus Group has entered into a licensing and 3D conversion partnership with Gener8 Media Corp.
As per the terms of the definitive agreement, Prime Focus will enter into an exclusive worldwide license to use the company's proprietary 3D conversion technology throughout the entertainment industry.
The Gener8 brand and team, which has become synonymous with top-quality 3D conversion in Hollywood, will continue to provide even more capacity for the 3D conversion business with help from the Prime Focus worldwide workforce. This will give Hollywood more confidence in Gener8's ability to perform 3D conversion on a larger volume of movies. Further, by licensing the company's technology, Prime Focus will push the quality and technical standards of the 3D even higher.
"We could not hope for a better partner in this transaction, and we strongly believe the partnership will be good for Hollywood and the 3D conversion industry. This is the absolute perfect agreement for both parties--it facilitates the spread of technology to help improve the quality for all in the industry, while also allowing Gener8 to prove it can handle greater volume, which has been what has held back Gener8's ability to grow. It is exciting to tap into Prime Focus's production systems, experience and workforce," said Gener8 CEO Rory Armes.
"We are focused on building a comprehensive creative services business, with an emphasis on visual effects and 3D conversion services. Our strength to date has been our significant offshore capabilities, which have now been enhanced by our technology partnership with Gener8. As well, with our recent merger with Reliance MediaWorks, we can leverage the Reliance infrastructure as a back end to help Gener8 increase capacity. This partnership will harness the strengths of both companies to create the best options for Hollywood in terms of 3D conversion and visual effects and leverage the existing workforce and scale of Prime Focus's production capacity in India," added Prime Focus CEO Namit Malhotra.
Upon transaction closing, Prime Focus will enter into a five-year worldwide exclusive license agreement to use its 3D technology. Total consideration payable by Prime Focus to Gener8 over the five-year period will range between $11.5 million to $16.5 million. The two companies will also enter into a Technology Services Agreement, where Gener8 will provide technical service and support on a cost recovery basis. Proceeds from the transaction will be used to grow Gener8's 3D technology as well as its other new and disruptive technologies, Cumul8 and Reelhouse.
