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Private equity firm acquires Robert Simonds’ STX Entertainment for $173m

Indian-American media company Eros STX Global Corporation is selling its LA-based producer and distributor STX Entertainment to private equity firm The Najafi Companies.

Robert Simonds (photo: Alex Berliner via CC)

The purchase price will be US$173m, subject to adjustments for transaction expenses and debt, including repayment of STX Entertainment’s debt, which currently stands at about US$148m, the companies said in a statement.

The deal includes a clause which allows Eros to seek alternative bids for a period of 45 days, paying a termination fee of US$4.5m and returning Najafi’s deposit of US$2m if it succeeds. Najafi will owe the same termination fee if it pulls the plug on the deal.

Otherwise the transaction is expected to conclude by the end of January.

STX is an independent studio and distributor founded and built by Robert Simonds, known for movies including Hustlers and Bad Moms. It is not known whether he will stay with the company after the buy-out.

Phoenix-based Najafi is described as “an entrepreneurial and mission-driven private investment company with significant holdings in consumer, media, talent-driven brands, ecommerce, tech and sports.”

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