Deluxe On Ascent [Updated]

Digital Cinema hasn't been kind to the plans of many of the industries larger companies, while smaller and more adroit companies like SmartJog continue to make good progress. Against that theme is Deluxe, which has much to lose as film use gets smaller, continues to find ways to make their future more stable. 

This weeks press release brings them not only the digital library services of Ascent Media, but many boutique post sites as well. If they can give each enough rein to do what they are good at, support them with assets that make each different, and not force corporate overheads that buy Jaguars for the VPs but inhibit innovations, they might get out of this transition in good shape.

Brief Update: On 31 December, Deluxe issued a press release announcing that they have completed the transaction.

Hollywood, CA November 24, 2010 — Deluxe Entertainment Services Group Inc. announced today that it has signed an agreement with Ascent Media Corporation (NASDAQ: ASCMA) to acquire Ascent's Creative Services and Media Services businesses, including the well-known brands of Company 3, Beast, Method, Rushes, Encore Hollywood and Level 3 Post. 

The acquisition will also enhance Deluxe’s services for clients that include life-cycle library management and digital asset management. Digital services include file based mastering, archiving, digital distribution, DVD and Blu-ray authoring. 

Deluxe is the world’s largest processor of film for the motion picture industry and the industry’s largest provider of Blu-ray authoring services. Over the last few years Deluxe has significantly increased its service offerings in digital services and content delivery. The company’s pipeline includes 2D and 3D post production services from film or digital capture to digital intermediates with the proprietary EFILM® workflow, theatrical release (35mm and digital cinema), and home entertainment services for every digital media platform. 

“Deluxe is well positioned to take our company into the future as technologies continue to transform how customers create and distribute content for films and television programs,” said Cyril Drabinsky, President and CEO of Deluxe. “We look forward to this talented group of people joining the Deluxe team,” adds Drabinsky. 

The transaction is subject to customary closing conditions and is expected to close by the end of the year.