City National Bank, an American private and business bank, announced this week the purchase of intellectual property rights management company FilmTrack.
City National Bank say: Founded in 1996, FilmTrack’s cloud-based platform enables its nearly 200 global entertainment clients to calculate, track and analyze billions of dollars of distribution revenue and participation payments, and manages every aspect of the complex intellectual property life cycle, including rights contracts, invoicing, financial reporting, and royalty and participation calculations.
This acquisition will strengthen City National’s leadership in providing the entertainment industry with complex payments solutions and intellectual property rights management. It also will build on the bank’s strong set of entertainment-focused services. In 2010, the bank acquired accounting software firm Datafaction, a comprehensive accounting solution for the entertainment industry and family wealth firms, and last year it purchased Los Angeles-based Exactuals, known for innovative SaaS solutions for complex payments.
“The acquisition of FilmTrack is another example of our long commitment to serving the entertainment industry,” said City National Bank CEO Kelly Coffey. “It will provide our clients with a unique end-to-end solution for payments, reconciliation and premier banking services. Combine FilmTrack’s unique tracking software with Exactuals’ payment system and City National’s banking services and you have a one-click secure solution you can’t get anywhere else. Organizing contracts, tracking rights and making timely payments have become significantly more complicated with all of the changes taking place in the entertainment industry, and our company is able to offer unique and compelling solutions.”
Entertainment companies use FilmTrack’s software, rather than outdated manual or legacy in-house solutions, to determine whether they have the rights to sell or license a film or television show domestically or internationally. The companies can then use FilmTrack to help track the film and promotional materials. FilmTrack’s sub-accounting software also has the ability to feed directly into clients’ general ledger systems, making it a powerful and convenient financial reporting tool for CFOs and other financial executives. The solution is part of the backbone of financial tracking for its clients.
Jason Kassin is the co-founder and CEO of FilmTrack, which has about 60 colleagues. He and the firm’s other executives are being retained with multiyear contracts. FilmTrack’s clients include a number of major networks, studios and distributors. The added financial strength of City National and its parent company Royal Bank of Canada will enhance FilmTrack’s ability to serve more clients.
“This acquisition benefits both companies,” said Kassin. “It will allow us to provide our clients with an expanded offering of financial and payment services and software that allows them to competitively differentiate their businesses by helping them run more efficiently and securely. FilmTrack’s leading technology and City National’s history of serving the entertainment industry create a perfect combination.”
The acquisition will allow FilmTrack to expand and accelerate the development of its platform, creating additional functionality around film and television finance. FilmTrack had previously raised more than $40 million in equity. Among its investors was Insight Partners, a leading global venture capital and private equity firm.
“We have enjoyed our partnership with FilmTrack over the last six years, working together to build a global software leader for end-to-end media rights management,” said Peter Sobiloff, Managing Director at Insight Partners. “City National’s history and experience serving the entertainment industry combined with FilmTrack’s SaaS rights management solutions will make for a fantastic partnership for the future.”