By Jay A. Fernandez | Indiewire April 20, 2012 at 11:32AM
Cinedigm Digital Cinema Corp. is acquiring New Video Group in a $20 million deal. New Video co-presidents Steve Savage and Susan Margolin will become co-presidents of Cinedigm Entertainment Group and report to Cinedigm chairman and CEO Chris McGurk. New Video COO Aimee Connolly will now have the same position at CEG.
The two companies partnered in January and have paired on the acquisition of festival films The Invisible War and Citadel, with releases planned in June and September. As part of Friday’s announcement, they have also acquired the SXSW world premiere In Our Nature from filmmaker Brian Savelson.
Founded in 1991, New York-based New Video has acquired licenses for more than 4,000 feature films and 6,000 television episodes and developed relationships with Netflix, iTunes, Amazon, Vudu, Hulu, Xbox and PlayStation. Cinedigm’s acquisition of the company expands its ability to acquire and distribute specialty films both theatrically and through digital platforms.
“Cinedigm is now a fully integrated distributor of independent films and specialty content,” said McGurk. “Over the past year, we have analyzed many companies in the digital distribution space for home and mobile entertainment and determined that New Video is the best partner for us. New Video’s highly regarded management team, led by Susan Margolin and Steve Savage, is entrepreneurial, forward-looking and innovative. Their tremendous success in the ever-evolving digital space, combined with their expertise in content acquisition, sales and marketing and distribution of traditional packaged goods, puts them clearly ahead of the pack. Our new distribution capabilities will provide a unique, one stop end-to-end digital distribution solution for independent content providers and financiers."
The deal involves $14 million in upfront consideration, plus additional earn out potential of up to $6 million over three years tied to CEG’s ongoing financial results. The upfront consideration will be paid with $10 million in cash and $4 million in Cinedigm stock. New Video was repped by Stephen Einhorn in the deal, which is expected to close Friday.