Technicolor says the acquisition will allow it to hit 2020 revenue objects in 2017.
Technicolor says The Mill is “consistently recognized by peers and clients as a premier visual effects provider for both advertising agencies and brands.” Founded in 1990, The Mill has operations in the key markets of London, New York, Los Angeles and Chicago.
Technicolor says the acquisition accomplishes many 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 portfolio of brands including MPC, Mr. X and Mikros Image servicing a broad range of customers across 10 global locations;
- Brings new 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 ($152.4 million) in 2014 while delivering EBITDA margins of approximately 20%.
What do we think?
Technicolor is becoming, if not a conglomerate, then at least a holding company. The company now expects to hit its “Drive 2020” earnings targets by 2017. It benefit from an extensive intellectual property portfolio focused on imaging and sound technologies as the basis for a growing licensing business.