Deal Is Worth At Least $9.1 Million; PFT and Dax to Exhibit Together Starting at NAB
Prime Focus subsidiary Prime Focus Technologies (PFT) is buying cloud-based dailies provider Dax in a transaction worth at least $9.1 million. Mumbai-based Prime Focus said Dax's Digital Dailies system, widely used in TV production, will help bolster its relationship with major Hollywood studios, broadcast networks, and others in the U.S.
In an interview with Indian business news channel CNBC-TV18, Prime Focus Group COO Vika Rathee said the deal was structured as a $2 million up-front payment — $800,000 of that is in cash, while Prime Focus will take on some of Dax's debt to make up the remainder — followed by a series of performance-based quarterly payments over a period of three years. (In other words, revenue from Dax will actually be used by Prime Focus to finance the purchase.) The Los Angeles Times reported that the total value of the deal could reach $12.5 million
"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," Dax CEO Patrick Macdonald-King said in a prepared statement. When the purchase is complete, Macdonald King will become President of PFT and be part of the company's executive team in North America.
Look for PFT and Dax to exhibit together at NAB 2014, bringing Dax products together with PFT's Clear cloud-based platform for broadcast.
