MUMBAI: Prime Focus has executed a term sheet with UTV Software Communications Ltd, wherein the former will acquire the entire post production business from UTV.
This will result in a transfer of related equipments, manpower and business contracts to Prime Focus Ltd. In addition, UTV Software Communications Ltd will also assign all rights, title, ownership and usage of the brand, mark and related intellectual property right in respect of the brand “USL” in the entire world in perpetuity in favor of Prime Focus.
Commenting on this business transfer decision, UTV head of business development and strategy Amit Banka says, “Since the past few quarters, UTV post production services has become a captive resource for the company. Also gradually the focus of our company is shifting towards content creation in movies, broadcast and gaming. Our internal post production facilities were not enough to sustain all types of work and it was not wise to invest more. While the details are still being worked upon, the valuation of facility will come up to $ 3-4 million.”
Prime Focus managing director Namit Malhotra says, “By getting the UTV post production services under our roof we will be able to provide larger scope of services to customers. UTV’s core area is content creation and ours is post productions, so this acquisition is a win-win situation for all.”
Malhotra further adds, “These acquired systems will be spread across all our Mumbai facilities. We may have to invest marginally for system up-gradations.”
The entire business transfer is likely to be completed by October end.