Nomura Acquires Stake in Indian Digital Media Company
Hong Kong, August 1, 2008 – Nomura, the leading Asian-based investment bank, today announced that it has reached an agreement on a US$16m investment in Real Image Media Technologies Pvt. Ltd., a leading provider of digital media and entertainment technology based in India with operations across North America, Europe and Asia and a pioneer in the domain of digital cinema globally. Led by Nomura's Asia Merchant Banking team, the financing transaction will allow Nomura to support the booming consumer services and media entertainment industry in India, and in turn contribute to the country's economic growth.
Established in 1986, Real Image and its wholly-owned North American subsidiary Qube Cinema Inc. provide digital cinema technology solutions that address not just the needs of cinema houses for digital cinema equipment and content, but also encompass the needs of the media and in-cinema advertising industry in India. As the only Indian company that has developed a digital cinema product that follows the requirements of Digital Cinema Initiatives (DCI) - a consortium formed by major motion picture studios such as Universal Studios and Warner Bros. to establish a standard architecture that ensures a high level of technical performance, reliability and quality for digital cinema - Real Image is a pioneer driving the evolution of India's film industry from analogue to digital cinema. The company's solid marketing, sales and support skills, as well as its strategic alliances with world-renowned technology leaders, further strengthens its position in the media technology space.
India's film industry has been experiencing robust growth in recent years, with around 900 films produced annually, and domestic box-office revenues of US$2.0 billion which is expected to grow at over 10% per annum in the next few years. With the increasing number of mid and higher income households as a result of the country's economic growth, and a growing young population, a larger pool of the population is willing to spend more on a higher quality cinema experience. This creates a more lucrative entertainment market, opening up more opportunities for the cinema value chain. For Real Image, this represents tremendous opportunities as the demand for its distinctive technology expands.
"Real Image has powerful end-to-end digital cinema solutions and proven business models that it is seeking growth from," said Jayendra Panchapakesan, Co-founder of Real Image. "This funding will help it accelerate the growth it is seeking in India and other markets across the globe".
"Real Image has an experienced management team and a solid track record in digital media solutions. We see great potential in this growing sector and look forward to being part of Real Image's exciting journey to win and maintain a leading position in the industry," said Yoshiki Hashimoto, Head of Asia Merchant Banking at Nomura. "Our investment in Real Image demonstrates our commitment to India and to building up our merchant banking business across Asia. We believe that by providing financial and management support to companies with strong prospects for growth, we will be able to contribute to growth in India and the rest of Asia."
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 18,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through five business divisions: domestic retail, global markets, global investment banking, global merchant banking, and asset management. For further information about Nomura, please visit www.nomura.com.
