Arenova's Dream Machine Tacks on Important Looking Pirates - The Deal

Founder-owned Swedish visual effects house Important Looking Pirates on Tuesday, July 16, announced a merger with Dream Machine FX, a visual effects house backed by Arenova Capital.

This deal marks Dream Machine’s entry into the European market and will elevate ILP’s scale and reach, with the combined footprint stretching across three continents, six countries and 11 cities.

The Stockholm-based company did not disclose the financial details of the deal, which will see ILP founders Niklas Jacobson and Yafei Wu become Dream Machine shareholders. Jacobson also will join the acquirer’s board, and Wu will become a senior adviser to Dream Machine and Arenova.

ILP chief executive Eva Mautino will become a Dream Machine managing partner and will continue to lead ILP.

The Deal had reported in January that ILP was exploring strategic options including a sale and that it had hired advisers to hold discussions with potential investors.

The company generates Ebitda of roughly €4 million to €5 million ($4.4 million to $5.5 million), The Deal reported.

Important Looking Pirates is a visual effects and digital animation studio that was founded in 2007 by artists. The company now has offices in Sweden, Germany and the U.K.

Its studio reel includes marquee projects such as “Jurassic World: Fallen Kingdom,” “Westworld,” “Jack Ryan,” “Star Wars: Ahsoka” and “Stranger Things.” The studio employs 150 “pirates,” according to its website.

Boston-based Dream Machine is a collective of VFX studios. The company provides services to entertainment companies across film, television, commercial advertising and interactive gaming. Dream Machine FX has operations in North America, Europe and Australia.

Dallas-based Arenova Capital is a middle market investment firm that focuses on the technology-enabled services, media and entertainment, and telecommunications sectors. The firm typically invests in companies with revenue of $10 million to $100 million, Ebitda of $1 million to $10 million and firm capital between $5 million and $50 million.

Arenova managing partner David Li worked on the deal internally.