Technicolor has added another aptly colourful string to its rainbow this week with the acquisition of London-based studio The Mill (the world’s largest VFX and content creation studio for the advertising industry) for just a shade over £190 million! Founded in 1990, The Mill is consistently recognised by peers and clients as a premier visual effects provider for both advertising agencies and brands, and has earned in excess of 1,000 industry awards. It has operations in the key markets of London, New York, Los Angeles and Chicago. The studio has recently created acclaimed work for brands such as Audi, SSE and DirecTV, and has also worked on some pretty impressive feature films. It was, for example, the lead VFX house on the epic turn-of-the-century blockbuster “Gladiator,” and earned a VFX Oscar for its efforts!
Technicolor has acquired London-based studio The Mill (the world’s largest VFX and content creation studio for the advertising industry) for just a shade over £190 million
According to the press release issues by Technicolor, the acquisition accomplishes many of the objectives set out in its “Drive 2020” strategic roadmap:-
- Establishes leadership positions for visual effects and digital creation across all segments of high-end content, including cinema, TV and advertising.
- Reinforces Technicolor’s strong portfolio of brands including MPC, Mr. X and Mikros Image servicing a broad range of customers across 10 global locations.
- Brings significant talent and expertise around emerging technologies such as virtual reality content that will enable Technicolor’s to enhance its technology platform across the entire industry.
- Adds significant financial contribution with a business that has grown revenues at a 16% CAGR since 2009 to reach €135 million in 2014 while delivering EBITDA margins of approximately 20%.
- Allows Production Services to better balance its portfolio through increased exposure to advertising and strengthens the financial profile of the Entertainment Services segment. With this acquisition Production Services accounting for approximately 40% of Entertainment Services revenues.
Technicolor CEO Frederic Rose, who held an audio webcast and conference call last night with CFO Esther Gaide, said of the company's landmark acquisition: “In acquiring The Mill, we are executing on our Drive 2020 strategic objective of enhancing our market position in visual effects while improving profitability and revenue growth concurrently with accelerating deployment of emerging technologies. In The Mill, we have found a company that aligns with our focus on excellence in talent, technology and operational performance. It is a perfect fit.”
The deal gives Technicolor access to the Mill's emerging technologies, such as creating virtual reality content
The deal, which also gives Technicolor access to the Mill's emerging technologies, such as creating virtual reality content, is part of Technicolor's strategy to expand its ties with advertisers and build out its visual effects business. Technicolor already owns the London-based visual effects house MPC, Mr. X, and Mikros Image. With this latest acquisition, alongside the recent acquisition of Cisco Connected Devices, Technicolor's production services will account for approximately 40% of its entertainment services revenues and the company now hopes to reach its 2020 goals by 2017.
