MUMBAI: Prime Focus Ltd is in talks to acquire two post-production and visual effects companies based in North America.
The acquisitions will be made either directly by the company or through its subsidiaries. The transaction is subject to due diligence and execution of definitive agreements.
The two companies operate post-production and visual effects businesses catering both to the film and the television broadcast industries. If successful, the proposed acquisition would be a material acquisition for the Prime Focus Group as the companies, aggregate revenue for 2007 when added to the consolidated revenue of the Prime Focus Group for the same period, would represent a third of the combined revenue of the consolidated Prime Focus Group after such acquisition.
Prime Focus believes that the proposed acquisition would be in line with its strategy of acquiring companies, which are strategically located, have a verifiable track record, relationships and a talent pool but due to a variety of reasons are not generating profits.
The company intends to utilize its management capabilities and industry knowledge to turn around such loss making entities (including the proposed acquisition) into profitable businesses and create a global business model. Within the last 18 months Prime Focus has already carried out a similar exercise with VTR plc.