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Chennai-based Qube Cinema Technologies and Mumbai-headquartered UFO Moviez on Thursday announced the merger of their businesses.
Qube Cinema’s businesses — Qube, Qube Digital and Moviebuff — and UFO Moviez’s PJSA Technology will be part of the merger. UFO will also purchase a stake in Qube Digital from private-equity investors who have been shareholders of Qube. Qube Digital’s shares purchased by UFO will stand cancelled post-merger, said a press release.
UFO and Qube Digital will have a stake of 63.6 per cent and 36.4 per cent, respectively, in the merged entity. According to the release, with both companies being in the digital cinema distribution and in-cinema advertising platform, the proposed merger will improve growth opportunities in India and overseas.
The combined entity will have 7,300 screens across India with a seating capacity of 95.5 million per week. Qube Cinema has a strong penetration in the South, whereas UFO is strong in other parts of the country. In addition, Qube has developed a content and digital rights management platform for movies, called Qube Wire. This service, which is yet to be commercialised, is in operation for select clientèle.
The combined network, post-amalgamation, will allow faster monetisation of Qube Wire and other IP-based Qube products, both within India and internationally, the firms said.
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