Cinedigm to Acquire Digital Distribution Company in Deal Worth $20 Mil
Cinedigm Digital Cinema Corp has reached an agreement to acquire New Video Group, Inc., a digital distributor and aggregator of independent content. Under a deal expected to be finalized Friday, New Video is being purchased for $14 million in upfront consideration, with earn out potential of $6 million tied to company performance over the next three years. The purchase price is being paid as $12 million in cash plus Cinedigm stock.
Cinedigm leaders say the acquisition represents the company further expanding its reach into the home entertainment, digital and mobile markets.
“Cinedigm is now a fully integrated distributor of independent films and specialty content,” Cinedigm Chairman and CEO Chris McGurk said in a statement. “Our new distribution capabilities will provide a unique, one stop end-to-end digital distribution solution for independent content providers and financiers.”
In January, Cinedigm and New Video formed a strategic partnership, through which they secured the distribution rights to indie films Invisible War and Citadel at last month’s South by Southwest Film Festival. Cinedigm announced Thursday a third film, In Our Nature, had also been acquired.
Steve Savage and Susan Margolin, co-presidents of New Video, are assuming the titles of co-presidents of Cinedigm’s Entertainment Group, which includes New Video and Cinedigm's previously existing marketing and booking services. They will report to McGurk.