Panavision Inc., Saban Capital Acquisition Corp. and Sim Video International Inc. have entered into a merger agreement to create a “global provider of end-to-end production and post-production services to the entertainment industry,” the companies announced Thursday.
Headquartered in Woodland Hills, Panavision is a provider of high-precision optics and camera technology for filmmakers. Sim is a Toronto company that provides film production and post-production services.
Saban Capital Acquisition Corp. is a publicly traded special purpose acquisition company controlled by Los Angeles billionaire Haim Saban. Under the merger agreement, Saban Capital will buy Panavision and Sim for $622 million, inclusive of debt. Immediately following the transaction, Saban Capital plans to change its name to Panavision Holdings Inc. and will continue to trade on the Nasdaq.
Under the plan, Kim Snyder, chief executive of Panavision, will serve as chairman and chief executive of the combined company. Bill Roberts, chief financial officer of Panavision, will hold the same title at the combined company.
The strategy behind the deal is to capitalize on the growth of content production spending, the companies said.
“Advancements in technology and the emergence of streaming have fundamentally changed how consumers watch and discover content,” Saban, chairman of Saban Capital, said in a statement. “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.”
Currently, Saban Capital trades under the ticker SCAC on the Nasdaq. Shares closed Friday down 1 cent, or a fraction of a percent, to $10.12.