London-based investment firm Novator Capital Advisers has invested $250 million in the subsidiaries of integrated media services provider Prime Focus and personal holdings of Namit Malhotra.
Malhotra is the founder of DNEG, a visual effects (VFX) and animation studio, and Prime Focus is its parent company.
As per a joint statement by the firms, Novator has invested $250 million in subsidiaries of Prime Focus Limited, the parent company of DNEG, and personal holdings of its founder Namit Malhotra.
After this investment, Novator will own a 15 per cent stake in DNEG, it said. Besides, Novator Chairman Thor Björgólfsson will also join the board of DNEG later this year, it added.
The Novator investment enables Prime Focus, the parent company of DNEG, to streamline its structure, consolidate minority investments, and position it for future growth, it added.
"Malhotra will continue in his current role as DNEG Chairman and CEO and will increase his ownership stake in the parent company from 35 per cent to approximately 70 per cent. Novator will own a 15 per cent stake in DNEG," it said.
This investment streamlines ownership structure and further positions DNEG to extend leadership into content development and adjacent categories, including gaming.
"With the investment from Novator, DNEG is well-positioned to capitalise on the high demand for its services in the burgeoning streaming content marketplace and explore opportunities in adjacent categories and formats, including gaming and original intellectual property (IP) content development and production," it said.
DNEG is a leading visual effects (VFX) and animation studios for the creation of feature film, television, and multiplatform content. It employs nearly 7,000 people with worldwide offices and studios across North America, Europe and Asia.
It has won six Academy Awards for best visual effects as well as multiple awards for its visual effects work on high-end episodic shows for OTT and streaming clients.
Commenting on the development, Novator Chairman Thor Björgólfsson said: "The global explosion in demand for high-quality content across platforms has given rise to significant opportunities in the media and entertainment market, and we have identified DNEG as having all of the key components in place to take full advantage of these opportunities.
DNEG Chairman and CEO Malhotra said, “The doubling of my equity investment in DNEG’s parent company is testament to my full commitment and total belief in the opportunity."
Novator invests in sectors including telecommunications, pharmaceuticals, technology, gaming, financial services, clean energy, consumer products, and real estate.
