Technicolor has received a binding offer from private equity firm Francisco Partners to acquire the company’s Grass Valley unit.
The transaction represents a continuation of the Hollywood lab and technology company’s previously announced plan to focus on its core service businesses for the entertainment industry. Grass Valley manufacturers and markets products such as cameras, editing and storage systems for production, post-production and broadcast.
Francisco Partners manages nearly $5 billion in capital and focuses on technology investments. Since it was founded in 1999 it has built a portfolio that includes over 50 technology companies.
“The (Grass Valley) business has an unrivalled brand identity and company heritage,” said David Golub, partner at Francisco Partners. “We are looking forward to the opportunity to work closely with Grass Valley’s management to create a company that leverages the strong entrepreneurial spirit within Grass Valley, allowing them to achieve even greater success.”
The binding offer is for 100% ownership of the current Grass Valley Broadcast & Professional business, which would operate simply as Grass Valley. The company manufactures, markets and services a wide array of production, post-production and broadcast technology, including cameras, editing systems and automation products.
“This is positive news for the company and our customers,” said Jeff Rosica, senior veep of Grass Valley. “We are encouraged that we are taking a major step towards completing the divestiture process with this binding offer… The opportunity to be part of Francisco Partners’ portfolio gives Grass Valley a solid foundation to continue to work tirelessly to maintain our core values…Our customers worldwide will continue to receive the high quality and service that they have come to expect.”
Grass Valley’s transmission and headend businesses are not part of the proposed acquisition. Technicolor is still planning a divestiture of those units, which continue to operate separately.
Subject to final agreement, regulatory approval, and applicable notification requirements, the transaction is expected to be complete by year-end. Terms were not disclosed.