Imax Expands Horizons With Acquisition Of Streaming Tech Company Ssimwave
22.09.2022 - 23:19
/ deadline.com
Imax Corp. has acquired Ssimwave, an Ontario-based AI-driven tech firm whose clients include media giants from Disney and Paramount Global to Warner Bros. Discovery and NBCU parent Comcast. It’s a cash and stock deal worth $21 million.
Imax has also worked with Ssimwave, an expert in enhancing on-demand and live visual imagery for broadcast and streaming across devices, from an Imax big screen to a phone.
The purchase is for $18.5 million in cash and $2.5 million in stock. There’s an additional earnout consideration of $4 million, subject to achieving certain operating performance and financial objectives. Imax said the acquisition is expected to have “minimal financial impact” in 2022 and be accretive in 2023.
Ssimwave was founded at the University of Waterloo (the Toronto-Waterloo tech corridor is the one of the largest in North America after Silicon Valley) and isn’t far from the Imax Canadian headquarters.
“The fact is that we are not a theater exhibitor, but a technology licensing company,” Imax CEO Rich Gelfond tells Deadline. He had presaged a pivot, noting on a recent earnings call that “Imax 3.0” would be emphasizing the tech side of the business and the brand.
In the near term, Gelfond said, Ssimwave will drive new recurring revenue, and Imax will help it grow its business and product suite internationally. Longer-term, it’s about “new solutions for delivering Imax-quality video experiences across platforms, around the world” as Imax integrates Ssimwave engineers into many of its development projects.
Video optimization can be complicated and expensive but has never been more crucial as consumption explodes across platforms and in higher resolution — including 4K, 8k and new interactive experiences across gaming, VR,