Cinedigm to acquire entertainment distributor New Video
In a bid to establish itself as full-service entertainment studio, Cinedigm Digital Cinema Corp. said it has agreed to acquire New Video Group, a New York-based distributor of independent films, TV shows and specialty entertainment.
Cinedigm, which supplies software to convert films into a digital cinema format and programs concerts and alternative content for movie theaters, said Thursday night that it had agreed to buy New Video for $14 million. The cash and stock transaction is expected to close Friday.
"Cinedigm is now a fully integrated distributor of independent films and specialty content,'' Cinedigm Chief Executive Chris McGurk said in a statement. "Over the past year, we have analyzed many companies in the digital distribution space for home and mobile entertainment and determined that New Video is the best partner for us."
Cinedigm is based in Morristown, N.J.
New Video was founded in 1991 to acquire and distribute alternative and independent movies. The company has acquired licenses for more than 4,000 films and 6,000 television episodes.
-- Richard Verrier
Photo: Chris McGurk is CEO of Cinedigm Digital Cinema Corp. Credit: Jay L. Clendenin / Los Angeles Times