Panavision and SIM are Merged by Saban Acquisition Corp. to Enhance High-end Content Productions

Big business news: Panavision and SIM (Sim Video International Inc.) have merged together by Saban Acquisition Corp to become one company under the name of Panavision Holdings Inc., in order to create a premier global provider of end-to-end production and post-production solutions to the entertainment industry.

The complexity of content creation

Creation of high end content can be an extremely complex and expensive. Cinema cameras, cinema lenses, devices, post houses, lights, numerous operators and the list does not end here. This is most relevant when the consumption of high end content creation elevates and accelerates (Amazon, Netflix, Hulu). That’s why a strong brand is needed, with facilities, equipments, highly trained manpower and most important, connections. That’s the idea behind this business triangle – to build a brand with financial back and resources.

Panavision as we all know, specializes in manufacturing high precision optics and camera technology for the entertainment industry, and a leading global provider of production-critical equipment and services.

Panavision highlights:

• More than 45 patents
• 171 Oscar Best Picture nomination
• More than 150 high-end cameras
• More than 7000 high end cinema lenses

Take a look at the chart below (taken from the investor deck) to explore Panavision 60 years of innovation:

About Saban Capital Acquisition Corp.

The merging company, Saban Capital Acquisition Corp. (NASDAQ:SCAC), is a publicly traded special purpose acquisition company.

About SIM

SIM (Sim Video International Inc.) is a leading provider of production and post-production solutions with facilities in Los Angeles, Vancouver, Atlanta, New York and Toronto.

To learn more about Sim, watch their video below:

One stop shop for high-end content creation

Well, it’s truly an obvious thing. Panavision has the technology, Sim has the facilities and Saban has the connections. Saban owns an extensive network of global relationships with studios, content creators and international media companies, which means that this merge has the potential to act like a one stop shop for high-end content creation for episodic, feature film, and commercial segments.

Watch the slide below (taken from the investor deck) which demonstrates the potential of this partnership in term of content creation.

Generally speaking, there is supposed to be a synergy between Panavision and SIM in the entire circle of production and post production (facilities, cameras, lenses, lights, DIT, sound and color). Assuming that every company will contribute assets to the goal of the creation of content, the potential is truly high, especially by combining Saban connections and business factors.

As stated by Adam Chesno , President and Chief Executive Officer of Saban Capital Acquisition Corp.: “This transaction creates a leading global platform ideally positioned to capitalize on the rapid growth in content production. The combination of these two companies will create the foremost provider of end-to-end production and post-production services. Combining this platform with Saban’s wide-ranging global media relationships, experience in production, and successful track record of creating value for its partners, will position the Company to accelerate growth and pursue complementary acquisitions”

The combination of these two companies will create the foremost provider of end-to-end production and post-production services

Panavision & Sim Combine to Create a Category-Defining Media Company – press on slides to upscale and read (taken from the investor deck): 

For more info, read the official press release by Saban. Also you can read the full investor deck which is very interesting since it includes some fascinating facts about the companies. You can read all materials, plus listening to the Investor Conference Call at this link. 

Conclusions

Although this partnership looks promising and logical, time will tell if Saban will leverage it to utilize high end productions. Should this business move cause to layoff at SIM and/or Panavision? Hopefully not. But again, we have to wait and see. Good luck!