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Black Dragon Capital acquires cloud-based media tech company Grass Valley

Miami-based private equity firm Black Dragon Capital has agreed to acquire the entirety of Grass Valley, a technology supplier of advanced broadcast and media solutions, from Belden.

According to Louis Hernandez Jr founder, managing director and CEO of Black Dragon, the firm plans to accelerate Grass Valley’s evolution in becoming the market leader in digital media, as well as open and inclusive cloud technology.

Private equity and venture capital firm Black Dragon makes control investments in growth companies it believes can become market leaders in industries disrupted by digitalisation. 

“Grass Valley has an iconic brand, track record of strong performance, superb clients and products that compete in the top tier in every category they’re in,” said Hernandez. 

“We are excited and honoured to work with Grass Valley’s leadership team, partners and resellers to take the company to the next level with a cloud-enabled, software-based business model, and cement its role as the standard bearer for the future of digital media,” he added.

Grass Valley invests in cloud-based and Software as a Service (SaaS) solutions, and Grass Valley’s president Tim Shoulders will continue to lead the company together with his senior team. 

“While Belden won’t retain any ownership or have an impact on operations, we are pleased that they will remain a close, long-term collaborative partner, which will ensure a smooth transition,” commented Hernandez.

Hernandez will become executive chairman and will work with Grass Valley leaders on strategy, execution, client relations and the accelerated expansion to a cloud-based subscription model.

Grass Valley’s president Shoulders said: “Black Dragon’s experience and vision will help us accelerate our move to cloud-based and SaaS solution product lines that will please customers seeking the most robust and flexible models for content production and delivery.”

Black Dragon, whose investments include e-commerce software and technology solutions developer for retailers and distributors Maginus in the beginning of December last year, and Enterprise Acquisitions, makes investment decisions based on the impact of digitalisation on workflow, technology, economics and human factors in the digital landscape. 

According to John Stroup, president, CEO and chairman of Belden, Black Dragon’s “media-related expertise, proven track record and relationships in the broadcast community” will benefit Grass Valley’s growth.

Cowen and Company served as advisor on the transaction, and Greenberg Traurig LLP served as legal counsel.

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