Film production underwriter FFI Holdings Plc (LON:FFI) is to acquire Buff Dubs, an Australian post-production services provider, for an initial payment of A$881,000.
The acquisition follows the signing of a letter of intent in September and is the third acquisition this year in the field of post-production services.
READ: FFI Holdings strengthens ancillary business with EPS-Cineworks acquisition
Buff Dubs was founded in 2005 and has preferred provider and vendor status with some of the world's leading media platforms, including Netflix, Apple and Google, as well as gaming platforms including PlayStation and Xbox.
In its last financial year, Buff Dubs generated A$4.3mln of revenues and underlying earnings (EBITDA) of A$881,000.
As well as the initial down-payment of A$881,000 FFI will make five annual payments to the vendors of Buff Dubs that are equivalent to Buff Dubs’ EBITDA at a four-times multiple.
The management and directors of Buff Dubs will be staying on board to oversee the operations and growth of the company.
READ: Film completion contract firm FFI Holdings seeking AIM spotlight with listing move
"2017 has seen FFI make a concerted expansion into post-production services as we broaden our business to serve the wider needs of our entertainment industry clients,” said Steven Ransohoff, chief executive officer of FFI.
“As with Pivotal Post and EPS-Cineworks, Buff Dubs brings valuable expertise and customer relationships to FFI. Buff Dubs' vendor relationships across consumer media platforms such as Netflix, Apple and Google are particularly exciting opportunities for FFI as we help our clients reach new audiences with their content," he added.
