×
You will be redirected back to your article in seconds

China’s Huayi to Pay $125 Million for D-Cinema Group GDC Technology

Company's shareholders have included Carlyle and Alibaba's Jack Ma

HONG KONG – Huayi Brothers Media is to pay up to $125 million for GDC Technology, a manufacturer of servers and equipment for digital cinema installations.

Huayi currently has a 12% stake in the Hong Kong-based business. That will increase to 79% after it buys out stakes currently held by private equity funds Carlyle Asia Growth Partners IV LP, Yunfeng Investment GP, and another shareholder Mighty Capital.

Huayi will buy the stake through its Huayi International subsidiary, and pay in a mix of cash and shares. Some $67 million will be funded through a share issue, while the remainder is an earn out linked to profits in the next two financial years.

The deal sets a target of net profits of $17 million for the next two years and values the business at $125 million, using a 7.35 multiple of target profits.

Founded by Dr Chong Man Nang in 1999, GDC was for several years a pioneer of digital cinema systems and built up a client base largely in Asia and the Americas. It moved into profit with the booming 3-D and digital conversions for the past five years.

Along the way it has attracted several interesting shareholders. These included Li Ka-shing, the Hong Kong-based retail, ports and telecoms billionaire who is Asia’s richest man, and Yunfeng, a fund associated with Alibaba founder Jack Ma.

At the time that Carlyle and Yunfeng led a buyout of 80% of the business in Oct. 2011, GDC claimed to have the world’s second largest installed server market. These included 4,500 servers in China, then representing 54% of the mainland Chinese market.

Huayi has operations that stretch from film and TV production and distribution, through to fashion, theme parks and cinema operation. Earlier this week it announced that it will invest up to $130 million in a new U.S. film and TV subsidiary.

More Biz

  • Motown Seeks to Block 'O-Town' Trademark

    Motown Seeks to Block 'O-Town' Trademark

    UPDATED: The boy band O-Town briefly rose to fame in 2000, with a star turn on MTV’s reality series “Making the Band.” But the reformed group has just one obstacle to its efforts to trademark its name: Motown Recordings. The label’s parent company, Universal Music Group, is trying to block the band from registering “O-Town” [...]

  • Alyssa Milano

    Alyssa Milano Settles $10 Million Suit With Former Accountant

    Actress Alyssa Milano has settled a legal battle with her former accountant as the case was on the verge of going to trial. Milano and her husband, agent David Bugliari, filed suit in 2017, alleging that accountant Kenneth Hellie had forged her signature on checks, failed to pay overdue bills and taxes and allowed costs [...]

  • J Balvin ‘Amicably’ Parts Ways With

    J Balvin ‘Amicably’ Parts Ways With Longtime Manager Rebeca Leon

    J Balvin and his longtime manager Rebeca León have “amicably” parted ways, reps for the singer and León confirmed to Variety. The news was first reported by Billboard. León — who also oversees the careers of fast-rising Spanish singer Rosalia as well as Colombian superstar Juanes, with whom she founded Lionfish Entertainment — began managing Balvin early in his career [...]

  • Ann Sarnoff Headshot

    Warner Bros. Taps BBC Studios Americas Chief Ann Sarnoff as CEO (EXCLUSIVE)

    Warner Bros. has tapped BBC Studios Americas president Ann Sarnoff as its new CEO, a surprise pick that is sure to shake up the venerable studio. Sarnoff becomes the first woman to head Warner Bros. in its nearly 100-year history. She was under the radar during WarnerMedia’s search for a successor to lead the studio [...]

  • The Peanut Butter Falcon

    'The Peanut Butter Falcon,' 'For Sama' Win Top Awards at Nantucket Film Festival

    NANTUCKET, Mass. — Adventure drama “The Peanut Butter Falcon” and Syria documentary “For Sama” emerged as the top winners at the 24th annual Nantucket Film Festival. The festival, which concludes today, as ever put the emphasis on screenwriters and emerging talents. Director Paul Downs Colaizzo’s Sundance hit “Brittany Runs a Marathon” had a number of [...]

  • Donald Trump Ari Emanuel

    Ari Emanuel Was Vetted for Trump Administration Role

    Endeavor CEO Ari Emanuel was vetted for an unidentified role in the Trump Administration in November 2016, Axios reported on Sunday. Axios received a leak of nearly 100 internal vetting documents from the Trump transition, including reports on Rex Tillerson, Betsy DeVos, Gary Cohn and James Mattis. The researchers scrubbed news clippings, LinkedIn pages, and [...]

More From Our Brands

Access exclusive content