Leading technology-enabled visual effects and animation company DNEG and Sports Ventures Acquisition Corp., a publicly-traded special purpose acquisition company, announced that the companies have mutually agreed to terminate their previously announced business combination agreement, effective immediately. The companies decided to terminate the business combination agreement as a result of current unfavourable SPAC market conditions and other factors.
DNEG recently announced revenue outperformance in a business update with strong year-over-year growth and a record pipeline of new business reflecting unprecedented demand for its visual effects (VFX) and animation services.
“Due to current SPAC and equity market conditions, it was mutually determined that the best option for all parties at this time is to terminate the transaction. Namit and his team are leaders in the market, producing stunning and award-winning work that swept the awards this year. DNEG has a bright future and we wish everyone there much success,” said Sports Ventures CEO and board chairman Alan Kestenbaum.
“Due to the headwinds in the SPAC marketplace and general market volatility, we have decided to terminate our SPAC process with Sports Ventures. Alan and the team at Sports Ventures have been great partners in this process, and we wish them well as they move forward,” said DNEG Chairman and CEO Namit Malhotra.
“We feel incredibly optimistic about DNEG’s future and the Company continues to demonstrate impressive financial results, with our highest-ever revenue growth announced earlier this week. Our strong pipeline reflects the significant demand for our industry-leading visual effects and animation services, as evidenced by our recently announced multi-year deal extension and VFX services renewal agreement with Netflix through 2025,” Malhotra added.
Sports Ventures will consider other acquisition opportunities, subject to market conditions and timing.
Additional information about the termination of the business combination agreement will be provided in a Current Report on Form 8-K to be filed by Sports Ventures with the U.S. Securities and Exchange Commission and available at their website.
On 25 January 2022, DNEG had announced its entry into a definitive business combination agreement with Sports Ventures Acquisition Corp, a publicly-traded special purpose acquisition company, to enter into a definitive business combination agreement that will result in DNEG becoming a public company.
