Saban Capital Acquisition is buying camera equipment specialist Panavision and Sim Video International in a $622 million cash and stock deal.
The transaction, announced on Friday, is aimed at creating a comprehensive production and post-production entity. Saban Capital Acquisition Corp., headed by media mogul Haim Saban, intends to change its name to Panavision Holdings Inc. and is expected to continue to trade on the Nasdaq stock exchange.
Panavision president-CEO Kim Snyder will serve as chairman and CEO. Bill Roberts, chief financial officer of Panavision, will serve in that role for the combined company. The deal will close in the first quarter.
“Advancements in technology and the emergence of streaming have fundamentally changed how consumers watch and discover content,” Saban said. “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.”
Saban Capital Acquisition will pay Panavision shareholders $368 million in cash and 8.1 million shares of Saban stock with another 6 million shares vesting over time. Sim’s investors will receive $110 million in cash and 3.1 million shares of Saban stock.
“For nearly 65 years, Panavision has proudly served the entertainment industry, providing cutting-edge equipment and exemplary service to support the creative vision of our customers,” Snyder said. “This acquisition will leverage the best of Panavision’s and Sim’s resources by providing comprehensive products and services to best address the ever-adapting needs of content creators globally. These complementary companies subscribe to the same strategic vision: to support our customers as the category-defining provider of end-to-end production and post-production services.”