TPG Capital, the leading private investment firm that owns more than half of the Creative Artists Agency, has recently acquired Entertainment Partners, a payroll software powerhouse, for an undisclosed price.
Formerly an employee-owned business venture, the company currently provides payroll and other workforce management services. This includes residual calculations for clients all over the entertainment industry. According to the recently released company statement, the company's current management team will stay in their roles despite the acquisition.
In a statement, Entertainment Partners CEO and President Mark Goldstein said, "We're thrilled to have found a partner that is excited about our strategic vision as we support the evolution of the entertainment industry. Through decades of hard work and dedication by our talented team, and through a rewarding collaboration with the experts - our clients - we have made great strides toward digitizing and integrating production workflow. We now begin an exciting new chapter in which the significant resources and expertise of TPG will greatly accelerate our vision."
He also added, "We look forward to a productive long-term partnership that advances our opportunities to deliver phenomenal service to our clients."
At the moment, Entertainment Partners handles casting and payroll for background actors through its Central Casting division.
The terms for the deal are currently not disclosed. However, according to Entertainment Partners, the acquisition is expected to close around the second quarter of 2019.
Speaking about the new deal, TPG Partner David Trujillo was quick to comment, saying, "Our investment in Entertainment Partners is the culmination of years of work in the entertainment software and payroll technology industry. Entertainment Partners is the market leader in this sector and we are excited to partner with management on their client-first vision for the company."
According to him, they believe in Entertainment Partner's strong potential for innovation and continuous accelerated growth, having been invested in the continued proliferation of content across various forms of media.
The deal comes at a great time as talks between the Writers Guild of America and various major talent agencies on a new agreement have resulted in the issue over packaging deals getting stalled. Following this, WGA will then be holding a member vote lasting for four days for a new code of conduct for talent agencies active in the industry.
