Cinedigm Digital Cinema Corp. has acquired New Video Group Inc. three months after beginning a partnership with the New York firm to distribute independent films.
Woodland Hills-based Cinedigm will pay $14 million for New Video and an additional $6 million tied to future financial performance.
The acquisition gives Cinedigm a means to acquire and distribute independent feature films in theaters and digitally to the home and mobile devices.
Cinedigm Chairman and CEO Chris McGurk said Video was the best partner for Cinedigm due to the entrepreneurial, forward-looking and innovative approach of its co-presidents, Susan Margolin and Steve Savage.
“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,” McGurk said in a prepared statement.
Margolin and Savage will become co-presidents of Cinedigm’s Entertainment Group, which includes New Video as well as the pre-existing theatrical marketing and booking services.
Mark R. Madler