Providence Equity Partners invests Rs 2.6 billion in UFO Moviez

MUMBAI: Global private equity firm Providence Equity Partners has invested around Rs 2.6 billion (Rs 260 crore) in a mix of primary and secondary investment in UFO Moviez India.

With this Providence has become the largest shareholder in the satellite based digital cinema service provider UFO Moviez.

UFO has close to 2,500 installations across India and delivers MPEG – 4 High Definition content for digital cinema via satellite.

Providence Equity Advisors India managing director Bis Subramanian said, "Providence is delighted to partner with UFO Moviez, which is an innovative player in the film distribution and exhibition space in India. This is an exciting opportunity as the Company has pioneered a highly cost effective satellite based High Definition Digital Cinema system for delivering movies and other live content and is making a significant impact in the industry. UFO’s technology and business model are ideally suited for India and other emerging markets. Providence looks forward to a close partnership with the Company and to contributing to its further growth."

This investment will augment the company’s growth plans in the Indian and international markets as well as the roll out of its 3D systems in more than 1000 screens in India. UFO has aggressive expansion plans and is targeting 4,000 screens in the next two years.

The Indian promoters of the company, Valuable Group and Apollo International Limited (an affiliate of Apollo Tyres) as well as 3i Group will continue to remain significant shareholders.

UFO Moviez joint managing director Kapil Agarwal said, "We are very excited to initiate our partnership with Providence Equity Partners and look forward to driving the Company to its next phase of growth, where we will continue to provide better and more cost effective business solutions for the entertainment industry. Providence, as the world’s leading media and entertainment focused private equity fund is the ideal partner for us in the next phase of growth. Our alliance with Providence Equity Partners is an endorsement of our confidence in our unique pay per use business model and our robust technology infrastructure. The Digital Cinema space is growing at a very rapid pace and we are extremely well positioned to ride the wave into a completely digitized scenario. We believe that our highly efficient delivery platform combined with the commercial advantage of our Digital Cinema system will continue to drive digitalization not only in India but the world over."

UFO has also acquired a strategic stake in Scrabble Entertainment – the DCI compliant digital cinema company. Scrabble has over 250 screens where they have installed the Hollywood Studios mandated DCI certified Digital Cinema systems.

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