Oscar-winning UK movie tech firm DNEG Group has achieved a valuation of more than $2bn (£1.6bn) after an Abu Dhabi-backed fundraising to support expansion into producing its own films and games.
The London-based company, which was worked on movies like Dune, Oppenheimer, Interstellar and Avengers: Endgame, has raised around $200m (£158m) from Abu Dhabi’s United Al Saqer Group, backed by a member of the emirate’s royal family.
DNEG said the deal would enable expansion for its intellectual property and content creation arm, Prime Focus Studios, which recently co-produced The Garfield Movie.
The firm added that it would use the money to develop AI tools for other content creators to use advanced CGI across film, TV, gaming and advertising. DNEG said it would “democratise photo-real content creation in a wide range of applications”.
DNEG is currently working with Legendary Entertainment on Animal Friends, starring Ryan Reynolds, and The Angry Birds Movie 3. It is also producing an adaptation of the Indian epic, the Ramayana.
The company, which has received seven Oscars for Best Visual Effects, was created in 2014 by a merger between Double Negative and Prime Focus. It has the UK, India, the US and Canada.
DNEG nearly listed on the London stock market in 2019 before postponing its IPO due to market uncertainty. In January 2022, it outlined plans for a New York float through a merger with a special purpose acquisition company.
Following its latest fundraise, DNEG will open a new office and visual experience hub in Abu Dhabi, with plans to develop a Middle Eastern industry for content production, storage and distribution.
“Abu Dhabi is keen to invest in new initiatives and new technology, but also is looking to create a place where they are seen as not just financial investors, but people who are also developing and building their own industry,” Namit Malhotra, DNEG’s chair and chief executive, told the Financial Times.
Ahmed Jasim Al Zaabi, chair of Abu Dhabi’s Department of Economic Development, said the deal “accelerates technological advancements in the media and entertainment sectors but also underscores our commitment to fostering a robust ecosystem for content creation”.
Prabhu Narasimhan, managing partner of NaMa Capital, one of DNEG’s biggest existing investors, is due to join the group’s board and chair its Brahma AI tech unit.