Chennai-based animations major, Pentamedia Graphics, continues its shopping spree. As in the case of its earlier acquisitions, this time too Pentamedia has acquired a company with which it has transacted business in the past.
Pentamedia recently acquired an unlisted US company, the $11 million turnover Improvision Corporation, for $ 19.8 million in a stock swap deal. As per the deal, Pentamedia Graphics will be issuing 3.3 million global depository receipts (GDR) at $6 per underlying equity share. According to Mr. K. Srinivasan, director and chief operating officer (COO), Pentamedia Graphics, Improvision Corporation has an equity base of $10 million.
"The valuation was done by Stone Field Josephson Inc., known for valuing media companies in the US," Mr. Srinivasan adds. According to him, Improvision Corporation, after producing a full-fledged animated feature film, Sindbad – Beyond the Veil of Mists, will be coming out with a sequel to it and has also two live action films on hand.
The acquisition entitles Pentamedia to own the contents, digital assets and other tangible and intangibles of Improvision and also further strengthens its pre and post-production base.