Deluxe acquires Sony Electronics’ new media solutions division

Entertainment tech stalwart Deluxe has acquired Sony New Media Solutions, a division of Sony Electronics, in a deal the company says will boost its digital media supply chain capabilities.

Sony NMS provides a range of platform services to media companies around the world, including Sony Pictures Entertainment. Terms of the deal were not disclosed.

The transaction will enhance the system Deluxe has built to streamline many aspects of the production and distribution process for studios, streaming services and other companies. Founded more than a century ago, Deluxe has undergone a dramatic evolution as digital and cloud-based technology has overtaken physical media.

In a typical sequence in the supply chain, Deluxe ingests a customer’s assets — films or TV episodes, for example — in dozens of  different language versions. The materials are then stored in a secured cloud. When the customer licenses the content to a third party like Netflix or Apple iTunes, Deluxe can then localize it for the proper territory, providing subtitling or dubbing. It then validates the assets and creates a duplicate before final delivery.

“This is an important opportunity for Sony Pictures to extend our partnership and work even closer with a key supplier,” said Carrie Ferman, Senior Vice President, M&A and Corporate Development, Sony Pictures Entertainment. “As we continue to evolve our digital media supply chain, we are excited to see Deluxe blazing a trail into the future of our industry.”

John Studdert, VP of media solutions for Sony Electronics, called it “an opportunity for Sony to contribute in a unique way to the media and entertainment industry.”

Deluxe was acquired last year by Platinum Equity, the investment firm run by Tom Gores, billionaire owner of the NBA’s Detroit Pistons and brother of Paradigm’s Sam Gores. The deal with Sony closely follows the Deluxe acquisition of Sundog Media Toolkit earlier this year, which added cloud automation resources.

Warren Stein, COO of Deluxe, told Deadline via email that the Sony transaction was organic. “Deluxe is a very natural owner of this business as we have our own platform with a broader mix of customers,” he said. “We also own a very large localization (subtitling and dubbing) business that fits very well into the workflow. Sony would have been using third parties for these services.”

Cyril Drabinsky, CEO of Deluxe, said the deal “allows us to strengthen our breadth of technology and workflows, while enabling NMS customers full access to Deluxe’s spectrum of integrated supply chain solutions including cinema, localization and distribution.” Deadline