DIGITAL CINEMA – XDC closes its second round financing and raises 12.5 million EUR to leverage its early stage leadership position
The Extraordinary General Meeting of Shareholders of XDC today approved the second round of financing of the company, raising 12.5 million EUR additional equity. This funding will allow XDC to further expand its market-leading digital cinema network across Europe. Following the successful launch over the last two years, XDC is one of the largest digital cinema networks in the world with more than 230 digitally equipped screens that represent a 75% market share so far in its targeted area: Europe.
The XDC business model fulfils motion picture exhibitors’ requirements with a full service proposal for a fixed monthly fee, and motion picture distributors’ needs for a secure digital movie logistics and delivery platform that reduces print costs by more than 50% on average. XDC facilitates the long expected roll-out of digital cinema with a dedicated team of 40 experienced staff, which covers all of Europe. 2006 will be a transition year for XDC with the development of both the company customer base and the new hybrid MPEG2-JPEG2000 CineStore ® server.
EVS and all existing shareholders have participated in the second round and have welcomed a new partner: Powe Capital Management LLP. Existing shareholders were mainly BIP Investment Partners, Vivium Life Private Equity, Partners at Venture, Audiolux, Compagnie du Bois Sauvage, Meusinvest. EVS has contributed 2 million EUR, which dilutes the EVS share in XDC affiliate, down to 47.20%. XDC is expected to break-even in 2008 and to expense 4 million EUR at EBITA level in 2006 to create the best practice digital cinema solution provider in Europe.
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