More Broadcast Vendor M&A: The Carlyle Group Acquires The Foundry from Advent Venture Partners

Posted by Joe Zaller
Mar 15 2011

The Carlyle Group announced that is has acquired a “significant majority stake” in The Foundry, a UK-based visual effects software specialist, from Advent Venture Partners. As part of the deal, The Foundry’s founders and management will retain a significant minority stake in the business.

Although terms of the transaction were not disclosed, an article in the Financial Times newspaper says that that The Foundry was estimated to be worth “more than £75m ($120m)”.  If this valuation is correct, Advent Venture Partners has made a tidy profit since backing a management buyout at The Foundry less than two years ago.  This is the third broadcast industry deal for Advent in the past couple of years.  The UK-based venture fund sold its majority in Snell & Wilcox to Lloyd’s Development Capital in 2009, and retained a minority interest in Snell.  In 2010 Advent invested in ingest and transcoding vendor AmberFin.

The Foundry has experienced strong growth since the Advent-funded management buyout in June 2009, driven by demand for its visual effects software.  Since that time, the company’s headcount has tripled to more than 100 staff, and its revenue has more than doubled to £14.9m ($23.8m).  Today, The Foundry has more than 4,000 customers including The Moving Picture Company (MPC), Prime Focus, Dreamworks, Industrial Light and Magic (ILM), Framestore, Cinesite, Double Negative and several other high-end facilities.

Carlyle, which funded the acquisition through its “Carlyle Europe Technology Partners (CETP) II” fund, has acquired and invested in 20 companies, supporting their growth, expansion and business transformation initiatives in the technology space.  Carlyle says it plans to will support The Foundry’s expansion and continue to invest in its specialized product offerings while diversifying into adjacent market areas.

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Related Content:

Press release: The Carlyle Group to Acquire Visual Effects Software Developer The Foundry from Advent Venture Partners

Advent Ventures exits Snell & Wilcox in a merger worth £72million and retains stake in newly-created global force in broadcasting technology

AmberFin Closes Funding Round — Fourth Transcoding-Related Transaction in Past Few Months

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