Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus, has signed a definitive agreement to acquire DAX, a leading provider of cloud-based production workflow and media asset management applications to the entertainment industry, for a base consideration of USD 9.1 million in a uniquely structured performance linked transaction.

PFT through its US subsidiary will acquire all the assets of DAX for an upfront payment and with balance payable over 3 years such that cash flows from the North American operations will support the payment.

"This acquisition gives PFT ownership of DAX’s patented technology (US Patent No: 7,660,416/ 8,218,764) and products including the Primetime Emmy® award winning Digital Dailies solution which is the de-facto industry standard in television production. This acquisition also sets the course for PFT’s strategic expansion in North America. PFT will significantly enhance the value proposition to DAX's marquee customers including major studios and broadcast networks  and many independent production and distribution companies," it said.

''Our vision is to build the best enterprise platform for production on the cloud by taking a fresh look at media workflows through the lens of a studio that wants to efficiently collaborate across divisions with its entertainment content before, during and after the production phase,'' said Ramki Sankaranarayanan, founder and CEO, PFT. ''Digital Dailies is one of the first significant entry points to Production on the Cloud.''

Shares of the company gained Rs 0.1, or 0.36%, to settle at Rs 28.00. The total volume of shares traded was 15,827 at the BSE (Monday).