‘The Last of Us’ VFX House DNEG Inks Deal to Acquire Prime Focus Technologies (Exclusive)

Georg Szalai
Updated ·2 min read
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DNEG — the London-headquartered visual effects and animation house that has won Oscars for the likes of Dune and Tenet and has also worked on The Last of Us and season 4 of Stranger Things, among other projects — has entered a memorandum of understanding to acquire Prime Focus Technologies (PFT), a provider of cloud-based software and artificial intelligence technology for the media and entertainment industry.

PFT, a subsidiary of DNEG’s parent company, Prime Focus Ltd., is based in Burbank and has offices across North America, the U.K. and India with 1,700 employees, including about 300 software engineers. After the deal, DNEG’s global headcount will grow to more than 11,500 across North America, Europe, Asia and Australia.

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Financial terms of the deal, which, among other things, is subject to customary due diligence, corporate approvals and a definitive agreement, weren’t disclosed.

The transaction would bring media asset management software Clear, which “automates the content supply chain, including managing localization and fulfillment,” and its AI platform Clear AI under DNEG’s roof, allowing it to help studios, broadcasters and others manage content in the production and distribution process. The company said that the deal would “advance DNEG’s status as an end-to-end solutions provider, enabling its expansion into media tech and distribution services, including fulfillment, localization and marketing, and allowing DNEG’s worldwide media and entertainment client base to realize the financial, operational and strategic benefits of managing the entire lifecycle of their content with one trusted partner.”

Among the benefits to DNEG’s clients that management highlighted are the “efficiencies of managing all content through one platform with one trusted partner” and the “cost advantages of bundling creative, technology and fulfillment services with one partner.”

PFT’s client base includes the likes of Amazon, Britain’s Channel 4, Lionsgate, Netflix, Paramount, PBS, Sinclair, Star TV/Disney and Warner Bros. Discovery.

Earlier this year, DNEG struck a deal to buy production and post-production services from Prime Focus Ltd. Last year, it opened a studio in Sydney.

“DNEG is truly a global, 24/7 force in the business,” said DNEG chairman and CEO Namit Malhotra. He said the deal would open up “another avenue for future growth,” touting the firm’s ability to provide “end-to-end capabilities to meet the visual effects, animation, pre- and post-production, distribution fulfillment services and media asset management needs of all clients around the globe.”

Ramki Sankaranarayanan, founder and CEO of PFT, called the transaction “a positive step” for existing and prospective customers. “The consolidation with DNEG will enhance PFT’s financial strength and stability and help in building longer-term relationships with our clients.”

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