Panavision and SIM are Merged
Camera systems giant Panavision and post production and equipment company SIM Video International will merge under Saban Capital Acquisition.
When the merger takes place next year, Panavision and SIM will be a subsidiary of SCA, and all three companies will go by the new moniker Panavision Holdings. At that time, the current CEO and CFO of Panavision, Kim Snyder and Bill Roberts respectively, will maintain their roles in the new company. Snyder is reported to also take on the role as chairman of Panavision Holdings. According to a press release from SCA, “The transaction reflects a valuation for the combined entity of $622 million (inclusive of debt) or approximately 5.9x fiscal year 2018 estimated Adjusted EBITDA.” All parties have agreed to the merger, pending approval from SCA stockholders. The merger could take place as soon as first quarter of 2019.
“Advancements in technology and the emergence of streaming have fundamentally changed how consumers watch and discover content.”
The goal of the merger is to create a company that can provide all production and post product ion service needs. As a combined entity they will be able to take advantage of a growing entertainment market and offer a one stop shop for projects. SCA founder Haim Saban has a history with media acquisitions such as Univision, Celestial Tiger Entertainment, and Partner Communications. Saban explains, “Advancements in technology and the emergence of st reaming have fundamentally changed how consumers watch and discover content. This is driving significant growth in the market for production and post production services. This secular trend creates a tremendous opportunity for Panavision to leverage its leading technology and pursue opportunistic acquisitions to grow in a manner that is agnostic to the content creator and distribution channel.”
“Combining the talent and integrated services of SIM with two of the biggest names in the business, Panavision and Saban, will accelerate our strategic plan...the resulting scale of the new combined enterprise will better serve our clients and help shape the content-creation landscape,” said James Haggarty, president and CEO of SIM.