Technicolor acquires Cinedigm’s distribution assets, increasing satellite network to 1,100 locations in US and Canada.
Technicolor has acquired Cinedigm Digital Cinema Corp.’s physical and electronic theatrical distribution assets, in a deal which is estimated to increase the company’s digital distribution footprint by 40%.
The deal expands Technicolor’s satellite network to over 1,100 locations in North America.
Under the terms of the agreement Technicolor will acquire Cinedigm’s distribution assets, including replication equipment and hard drive inventory as well as a minimum of 300 incremental satellite roof rights with Cinedigm’s current and future exhibitor customers in the US and Canada.
Technicolor will also become Cinedigm’s preferred content servicing partner for post production through distribution services.
The news of the acquisition came as Technicolor announced mixed Q2 results, but strong H1 scores.
Group revenues amounted to €747 million in Q2 2011, down 6.1% at current currency compared to Q2 2010, and up 1.2% at constant currency.
Technology revenues were up 4.1% year on year at constant rates and Entertainment Services revenues were up 16.8% year on year at constant rates. Digital Delivery revenues declined by 14.6% YoY at constant rates.
Group revenues from continuing operations amounted to €1.5 bn in H1 2011, up 4% at current currency compared to H1 2010, and up 8.3% at constant currency while EBITDA from continuing operations reached €167 million or 10.7% of revenues in H1 2011, an increase of 1.2 points compared with H1 2010.