27 June 2014
Prime Focus World, the creative services subsidiary of global media and entertainment industry services leader Prime Focus Limited (BSE code: 532748) and Double Negative (DNeg), one of the largest visual effects services providers to the global film industry, have announced their decision to merge.
The combined entity will form one of the world’s largest independent creative services providers. Standard Chartered Private Equity, Macquarie Capital and AID Capital Partners will support the transaction.
“We have ambitious plans to build on what we’ve achieved in VFX over the last 15 years,” said Double Negative’s management team of Matthew Holben (CEO) and Alex Hope (Managing Director). “This deal allows Double Negative to develop into a truly global operation that provides great work for our clients and great opportunities for our staff.”
Key elements of the transaction:
- Merger of Double Negative and Prime Focus World to form one of the world’s largest independent creative services providers;
- Double Negative will fulfil its ambitions to open in Vancouver and will have complete access to Prime Focus’ existing visual effects operations in Mumbai, in addition to its own London and Singapore businesses;
- Double Negative’s management team of Matt Holben and Alex Hope will manage the global VFX business and will become Directors and Shareholders in Prime Focus World;
- Prime Focus founder Namit Malhotra will become Executive Chairman of the Board; and
- In addition to the clear synergistic benefits, the deal will further Double Negative’s ambitions to become a truly global VFX provider and ensure the combined entity is well positioned to act as strategic partner to its Hollywood Studio customer base through offering the full-suite of creative services across stereo conversion, animation and VFX services.
“The coming together of these two international companies, with the great synergies that they share, will not just change the rules of engagement – it will help raise the bar in our industry, from both creative and technological perspectives,” said Prime Focus Founder and CEO of Prime Focus World, Namit Malhotra. “Having Double Negative as partners in our vision is a dream come true. Our combined capabilities and creative leadership will pave the way towards even greater accomplishments. This agreement is a substantive validation of Prime Focus’ phenomenal growth story and global strategy.”
More on Double Negative
The transaction is subject to customary closing conditions and expected to close in July. Harris Williams & Co. acted as the exclusive financial advisor to Double Negative, and Olswang LLP acted as legal advisor.