As it moves deeper into content aggregation, Cinedigm has sold its digital theatrical distribution and exhibition software division to private investors led by David Gajda, one of the company’s original founders.
The all-cash transaction, effective immediately, divests Cinedigm of tools to manage all key elements of digital theatrical distribution and exhibition.
Cinedigm acquired Hollywood Software in 2003. Hollywood Software’s Theatrical Distribution System is installed in more than 30 distributors in North America including 20th Century Fox, Universal Pictures and Lionsgate.
The Digital Cinema Theatre Management System product is used to manage more than 12,000 screens worldwide.
“Given Cinedigm’s headlong pivot into entertainment distribution, having a software company – one that often serves our competitors – no longer made sense,” said Cinedigm chairman and CEO Chris McGurk (pictured).
“Advancing Hollywood Software’s growth as a stand-alone business, with Dave at the helm, makes abundantly more sense. Dave built Hollywood Software into one of the leaders in the field of entertainment enterprise applications and is the perfect person to take the software company to the next level. I’ve known and worked with Dave for a long time and couldn’t feel more confident about his ability.”
“I’m delighted to be coming back to the company with a new management team and the backing of investors to develop the next generation of products and open up new markets for them,” said Hollywood Software executive chairman Gajda.
“It is now positioned to lead the way for the transformation of digital distribution worldwide. As one of the founders, I am extremely familiar with the industry and I look forward to working with a group of talented people and loyal clients to deliver on the strategic objectives of the business.”