A Woodland Hills division of entertainment-content distributor Cinedigm Corp. has been sold to a group of private investors, the company announced on Wednesday.
Hollywood Software was acquired by the investors in an all-cash deal with Cinedigm, based in Los Angeles, though terms were not disclosed.
Cinedigm Chief Executive Chris McGurk said the company sold off the division because it is not part of its core business, which has switched to online digital and video-on-demand distribution.
Hollywood Software provides products for studios and theaters that helps manage digital distribution and exhibition of films.
“Given Cinedigm’s shift in focus to entertainment distribution and particularly the digital (streaming) network business, continuing in the software business, where we are selling to many of our competitors, no longer made strategic sense,” said McGurk in a prepared statement.
Among the investors in the deal is David Gajda, one of the original founders of Hollywood Software. He sold the company to Cinedigm in 2003.