Cinedigm Digital Cinema + Technicolor… Acquiring Minds Wish To Know (SatBroadcasting™)

[SatNews] This new partnership will involve the distribution and software design sides of this growing cinema market segment…

Cinedigm Digital Cinema Corp. (NASDAQ: CIDM) and Technicolor have entered into a binding letter of intent for Technicolor to acquire the assets of Cinedigm’s physical and electronic distribution business, as well as to create a strategic software design partnership between the two companies. The transaction is expected to close within 45 days, subject to the execution of definitive documentation. The arrangement is expected to provide superior service and value, with greater scale and functionality, to the combined studio distribution customers of each Company.

Technicolor will also become a strategic software design partner with Cinedigm, supporting the development of next generation entertainment industry software products to leverage the opportunities created by the rapidly accelerating global digital cinema conversion. The initial phase of the software partnership will commence with Technicolor’s global licensing of the Cinedigm digital distribution software platform. Additionally, the companies will evaluate opportunities to jointly market Cinedigm software products to Technicolor’s software customers in key existing and emerging territories worldwide. On the delivery side, Technicolor will become the preferred content servicing partner for Cinedigm’s growing alternative content and independent film distribution business. The companies intend to expand their delivery agreement as Cinedigm’s content distribution business grows organically and through acquisitions. As part of the arrangement, Technicolor will purchase certain assets of Cinedigm’s feature and trailer distribution delivery business based in Chatsworth, CA. Financial details of the deal and partnership were not released.

Cinedigm’s digital cinema deployment organization, software, combined satellite and hard drive digital movie delivery network; pre-show in-theater advertising services; and distribution platform for alternative content such as CineLive® 3-D and 2-D sports and concerts, thematic programming and independent movies provide a complete suite of services required to enable the digital theater conversion.