Prime Focus gained 3.57% to Rs 29 at 10:21 IST on BSE after the company's subsidiary Prime Focus Technologies signed a definitive agreement to acquire US-based DAX.
The announcement was made before market hours today, 11 March 2014.
Meanwhile, the BSE Sensex was up 35.77 points or 0.16% to 21,970.60
On BSE, so far 1.26 lakh shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past one quarter.
The stock hit a high of Rs 29.45 and a low of Rs 28.75 so far during the day. The stock had hit a 52-week high of Rs 44.50 on 20 March 2013. The stock had hit a 52-week low of Rs 23.75 on 5 December 2013.
The stock had underperformed the market over the past one month till 10 March 2013, falling 3.78% compared with the Sensex's 7.87% rise. The scrip, however, outperformed the market in past one quarter, gaining 4.28% as against Sensex's 3.2% rise.
The company has equity capital of Rs 18.54 crore. Face value per share is Re 1.
Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus before market hours today, 11 March 2014 announced that it has signed a definitive agreement to acquire DAX, a leading provider of cloud-based production workflow and media asset management applications to the entertainment industry for a base consideration of $9.1 million (Rs 56 crore) in a uniquely structured performance linked transaction. PFT through its US subsidiary will acquire all the assets of DAX for an upfront payment and with balance payable over 3 years such that cash flows from the North American operations will support the payment.
This acquisition gives PFT ownership of DAX's patented technology and products including the Primetime Emmy award winning Digital Dailies solution which is the de-facto industry standard in television production. This acquisition also sets the course for PFT's strategic expansion in North America. PFT will significantly enhance the value proposition to DAX's marquee customers including major studios and broadcast networks (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) and many independent production and distribution companies, Prime Focus said.
"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 CLEARTM Media ERP platform combined with DAX's team and products will accelerate the realization of this vision".
"The biggest broadcast networks in the world run CLEAR Media ERP platform to manage their content supply chain," said Ramki. "Managing 200 TV shows every day and over 350,000 hours of content has made CLEAR a world leader in the Media Cloud solutions market. We would like to extend this leadership to Production by tapping into the creative process in a more holistic way, empowering studios to truly transform the entertainment paradigm. DAX takes us closer to this goal," Ramki added.
"PFT has tremendous resources at its disposal," said Patrick Macdonald-King, CEO, DAX who will now assume the role of President and be part of the executive leadership team at PFT responsible for North America. "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".
"PFT's CLEAR platform is the most scalable and feature rich application I have seen in the market and its laser like focus on servicing the media industry is unique," said Macdonald-King. "Most of the competition is focused on single point solutions that further cement the siloed approach which is detrimental to long term agility and sustainability of media businesses."
Prime Focus said that the global market for media asset management, workflow management, collaboration and media processing services is pegged at approximately $10 billion. With content enterprises like broadcast networks faced with flat top lines and rising operating costs, organizations are increasingly attentive to solutions like virtualization of content supply chain operations, and media process outsourcing to enhance overall profitability as well as top line by realizing new media monetization opportunities in the multi-screen world.
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, Prime Focus said.
Meanwhile, Prime Focus before market hours today, 11 March 2014 said that the Board of Directors of the company at its meeting held on 10 March 2014, has considered and noted terms and conditions set out in the Draft Asset Purchase Agreement; and related documents to be executed in connection with purchase of substantially all of the Assets of Sample Digital Holdings LLC, a California limited liability Company by Prime Focus Technologies (Indian subsidiary of the company) through its wholly owned subsidiary DAX PFT, LLC, a Delaware Limited Liability Company.
Prime Focus reported consolidated net profit of Rs 10.33 crore in Q3 December 2013 as compared to a net loss of Rs 63.27 crore in Q3 December 2012. Total income rose 18.2% to Rs 219.40 crore in Q3 December 2013 over Q3 December 2012.
Prime Focus is a global visual entertainment services company that provides creative and technical services to the film, broadcast, and advertising market.
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