Cinedigm is paying $14 million upfront for the home entertainment distributor; deal's value could swell to $20 million if financial goals are met
Cinedigm Digital Cinema has acquired New Video Group, a home entertainment distributor, as part of its move to become a new full service studio.
Cinedigm, headed by CEO Chris McGurk, will pay $14 million to acquire the company in a deal that could swell to $20 million in three years, if Cinedigm financial goals are met.
The deal is expected to close April 20.
Cinedigm said the deal builds on its existing relationship with New Video. The joint venture has acquired "The Invisible War" and "Citadel," scheduled for release in June and September respectively. On Thursday it acquired "In Our Nature."
“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."
He touted the company's success in the digital arena, calling New Video "entrepreneurial, forward-looking and innovative."
Headquartered in New York City, New Video was founded in 1991. It is run by Susan Margolin and Steve Savage and has licenses for more than 4,000 films and 6,000 television episodes.
With the deal, Savage and Margolin will become co-Presidents of Cinedigm’s Entertainment Group, and will report directly to McGurk. Aimee Connolly, New Video’s Chief Operating Officer, will assume the same position for the Cinedigm Entertainment Group.