CAMBRIDGE, MA. — JANUARY 20, 2009 – GenArts Inc., the leading provider of digital visual effects software for the film, broadcast and video industries, announced today it has signed a definitive agreement to acquire SpeedSix Software Limited. As of today, all SpeedSix employees will join the GenArts team and remain in the UK. In addition, SpeedSix’s renowned Monsters and Raptors visual effects will be sold and supported in their current form alongside GenArts Sapphire, creating the industry’s most compelling family of state-of-the-art image processing and synthesis effects software.
The acquisition is part of GenArts’ aggressive growth strategy fueled by last year’s investment from Insight Venture Partners of New York. CEO Katherine Hays took the reins in June, 2008 and announced her intent to accelerate the company’s growth via acquisitions and strategic partnerships.
“We’re excited to announce the acquisition of SpeedSix as an initial step in our growth plan,” Hays said. “For over 12 years, GenArts has built a reputation for visual effects that inspire our customers to create the Academy Award-winning magic that has thrilled and delighted audiences around the world. We believe that the creativity and passion of our combined company will allow us to achieve new heights with our technology while leveraging our complementary businesses to create unequalled value for our customers in the years to come.”
SpeedSix’s Monsters and Raptors plug-ins feature powerful tools including retiming, particle effects, lens distortion matching, fire, and organic fluid backgrounds. Monsters and Raptors have been used throughout the film and video industry to create effects for some of the most popular movies, television and advertising produced in the industry.
Steve Hayes, Director of SpeedSix commented, “We’ve always admired GenArts and the outstanding reputation they have built over the last decade. We share their commitment to deliver the highest quality, most organic and most original visual effects tools in the world. We’re proud to be joining the GenArts family and look forward to working together to create exciting new products that allow filmmakers and vídeo artists to explore the limits of their imagination and create the entertainment experiences that continue to amaze us all.”
About GenArts
Founded in 1996 in Cambridge, Mass., GenArts, Inc. is the premier provider of digital visual effects for the film, broadcast and video industries. GenArts Sapphire equips digital artists with a collection of over 200 state-of-the-art image processing and synthesis effects such as: Glows, EdgeRays, LensFlare, Lightning, FilmEffect, Warps and Textures. The effects seamlessly integrate as software plug-ins into leading editing and compositing systems from Adobe, Apple, Avid, Autodesk, Assimilate, Digital Vision, Eyeon, FilmLight, The Foundry, Quantel and SGO.
Sapphire has become the industry standard for high-end visual effects creation by providing unrivaled image quality, a unique organic look, and ease of use. They have been used extensively in an array of television programs, music videos and feature films, including Iron Man, Indiana Jones and the Kingdom of the Crystal Skull, The Hulk, Spider-Man 1, 2 and 3, The Chronicles of Narnia, The Lord of the Rings trilogy, Star Wars – Episode I, II and III, Sin City, The Matrix trilogy, X-Men 1, 2 and 3, Titanic, Lost and CSI. www.genarts.com.
©2009 GenArts, Inc. All rights reserved. GenArts and Sapphire Plug-ins are registered trademarks of GenArts, Inc. All other trademarks contained herein are the property of their respective owners.
GenArts’ SpeedSix Acquisition FAQ
What did GenArts and SpeedSix announce?
GenArts, Inc announced that it has signed a definitive agreement to acquire SpeedSix Software Limited. GenArts has acquired all of SpeedSix’s assets including all products and employees.
When does this acquisition become effective?
On January 20th, 2009.
Why did GenArts purchase SpeedSix?
We believe that GenArts and SpeedSix were very complementary companies in several ways.
* We share a common passion and vision for the future of the visual effects industry.
· SpeedSix’s Monsters and Raptors products allow GenArts to expand the range of visual effects software that we offer to our customers.
* We also believe there is significant opportunity in applying GenArts’ multi-platform expertise to SpeedSix’s products.
* We believe there is significant opportunity to apply GenArts’ considerable sales and marketing resources to expand the market for Monsters and Raptors.
* We believe that these factors make the combined company far more valuable than they were prior to the acquisition.
What were the terms of the deal?
Both GenArts and SpeedSix are privately held companies. The terms of the deal were not disclosed.
Were financial problems at SpeedSix in any way a motivation for selling the company?
No. Both companies see significant strategic growth opportunities as a result of this acquisition.
How long have discussions around this acquisition been going on?
The discussions were friendly and amicable and both companies look forward to joining forces. Unfortunately, we cannot discuss any additional details surrounding discussions or negotiations.
Were other companies seeking to acquire SpeedSix? Was there a bidding war?
Unfortunately, we cannot discuss those details.
Was this an acquisition involving cash only or is there some equity in the joint company involved?
Because the companies are privately held, these details have not been disclosed
Will SpeedSix continue to operate as a separate company?
No. All SpeedSix employees will become GenArts employees and all SpeedSix products will be sold, marketed and supported by GenArts.
What will become of the SpeedSix employees?
As of January 20, 2009 all SpeedSix employees will become GenArts employees. There are no layoffs or personnel changes planned as part of the acquisition.
Will SpeedSix employees be remaining the UK?
Yes. All SpeedSix employees will remain in the current location in Surrey, UK.
What will happen to SpeedSix’s products?
Monsters and Raptors will continue to be sold and supported in their current form with their current product names. They will join GenArts Sapphire to form the industry’s most compelling family of state-of-the-art image processing and synthesis effects software.
Will current users of Monsters and Raptors now have to buy Sapphire in order to use the product they have already purchased?
No. Current SpeedSix clients can continue to use the product as they normally would for the duration of the license period.
Will Monsters and Raptors be combined with Sapphire to make a larger more expensive suite of plug-ins?
There are no plans to combine Monsters and Raptors with Sapphire into a single product. For now, Monsters, Raptors and Sapphire will continue to be sold in their current form and at their current price points. For instance, customers may choose to purchase Monsters separately, or bundled with Raptors. We are continually evaluating additional packaging and pricing options to provide our customers maximum value and flexibility.
If I am a GenArts reseller, can I now sell SpeedSix products?
We will work to evolve our reseller program in the near future to provide our resellers the most efficient way to offer the entire line of GenArts products and to maximize value and flexibility for their customers. Until then, GenArts resellers will need a separate authorization to sell SpeedSix products.
If I am a SpeedSix reseller, can I resell GenArts products?
We will work to evolve our reseller program in the near future to provide our resellers the most efficient way to offer the entire line of GenArts products and to maximize value and flexibility for their customers. Until then, SpeedSix resellers will need a separate authorization to sell GenArts products.
How do I get support for a SpeedSix product?
Please continue to contact the UK office for now; as we continue integrating the companies we expect to provide a unified support system.
Who do I contact to purchase a SpeedSix product?
Please continue to contact the UK office for now; as we continue integrating the companies we expect to provide a unified sales system in the near future.
Are you announcing any new products today?
No. We are not announcing any new products at this time.
What is the revenue of the combined company?
Both GenArts and SpeedSix are privately held companies. Financial metrics are considered confidential information.
How many employees will the combined company have?
Both GenArts and SpeedSix are privately held companies. Financial metrics are considered confidential information.
Does GenArts now have a legal UK entity?
Yes. We have formed GenArts UK Ltd. We felt like it was important to commit ourselves to the markets where our customers are. In December, 2008 we established GenArts’ presence on the West Coast of the US, and now we have an entity in the UK.
Does GenArts plan any additional acquisitions this year?
That is confidential information. We have announced an aggressive growth strategy for 2009 and SpeedSix is a key component of that strategy. We continue to review other strategic acquisitions at this time and we’ll announce them as appropriate.
GenArts announced that it received funding from Insight Venture Partners but did not disclose the amount of that funding. Can you disclose that now?
No, we cannot disclose details around that investment other than to say the investment was made to fuel our aggressive growth strategy.