Prime Focus in 'focus' today

Prime Focus is in the limelight today morning, with the stock opening higher at Rs.29, its current level, up over 3.5%. It still remains far away from its 52-week high of Rs.44.50.

The stock is up after the company announced today morning that its technology subsidiary has agreed to buy DAX, a California based provider of cloud-based production workflow applications for Hollywood movies. This deal has been struck at Rs 56 crore of which the subsidiary will make an upfront payment of Rs 4.8 crore and infuse Rs 8 crore towards working capital. The rest of the money will be paid over three years, using cash generated from its North American operations.

This is considered to be a good acquisition as it is expected to give Prime ownership to DAX’s patented technologies and help expansion in USA. DAX customers list is a veritable who’s who list of Hollywood including, Warner Bros. Television, CBS Television Studios, 20th Century Fox Television and Lionsgate.