Phantom Digital Effects Limited (NSE: PHANTOMFX) has announced a major strategic move in the global visual effects (VFX) industry, signing a term sheet to acquire Milk VFX and Lola Post—two of Europe’s most acclaimed and award-winning VFX studios.

The deal marks a transformative expansion for PhantomFX, extending its studio footprint across the UK, Ireland, France, and Spain and integrating a prestigious client portfolio that includes BBC, Netflix, Prime Video, and Warner Bros. It also secures direct access to UK Film Tax Relief and EU co-production incentives, strengthening the company’s competitive positioning in the global VFX market.

Strategic Impact and Financial Contribution

The acquisition is projected to be completed within three months, with Milk VFX expected to play a pivotal role in Phantom’s growth trajectory from H2FY26 onwards. In FY2024, Milk VFX generated ₹289 crore in revenue (GBP 27.5 million) and an EBITDA of ₹36 crore, making it a highly profitable addition to the Phantom Group.

This acquisition extends Phantom’s operational presence to eight countries—India, USA, UK, France, Spain, Ireland, Canada, and China—making it one of the most globally integrated creative technology networks in the VFX sector.

Creative Leadership Excellence

The deal brings together some of the industry’s most respected creative leaders:

• Sara Bennett – Milk’s Chief Creative Officer, Oscar and Emmy winner for works including Ex Machina and Sherlock.

• Rob Harvey – Lola Post Creative Director, BAFTA and Emmy nominee, with credits such as Gladiator and Little Women.

• Jean-Claude Deguara – Executive VFX Supervisor with decades of experience on high-profile BBC, Netflix, and Amazon productions.

• Chris Burn – Managing Director overseeing Milk and Lola’s European operations.

• Andy Morley and Jorge Olivia – Regional creative leads in France and Spain, respectively.

Bejoy Arputharaj, Founder and CEO of PhantomFX, stated:

“This acquisition accelerates our path toward becoming one of the world’s most profitable and creative visual effects networks. With Milk and Lola joining our group, we are expanding our global footprint and multiplying our capacity to deliver award-winning content for the world’s most discerning studios.”

Global Growth Strategy

The acquisition complements Phantom’s recent expansion into China, where the company has set up Hangzhou Huantong Digital Technology Co., Ltd. to tap into the country’s booming demand for VFX in film, gaming, and digital content. Strategic partnerships with Chinese production houses are expected to further strengthen Phantom’s market entry in Asia.

With the integration of Milk, Lola, Spectre Post, Tippett Studio, PhantomFX India, Dubai, and China operations, the company is establishing a unified production pipeline capable of delivering cinematic-grade visual effects with speed, precision, and scalability.

Key advantages of the expanded network include:

• Deep access to major streaming platforms and broadcasters.

• Tax-optimized service delivery models across multiple countries.

• Global AI and real-time production capabilities.

• Talent integration across five major VFX brands.

Operational Continuity

Milk and Lola will retain their individual brand identities and creative cultures under Phantom’s ownership, ensuring that their established reputations continue to flourish while benefiting from shared technology infrastructure and global client access.

Binu Joshua, Chief Operating Officer of PhantomFX, commented:

“With Milk and Lola, Phantom is not just increasing its size, but strengthening its ability to lead the future of cinematic and episodic storytelling.”

About Phantom Digital Effects Limited

Phantom Digital Effects Limited is a publicly listed global VFX services provider operating in India, USA, UK, Canada, France, Spain, Ireland, and China. Its portfolio includes PhantomFX, Tippett Studio, Spectre Post, Milk VFX, and Lola Post, offering end-to-end production services for films, series, immersive media, and advertising. The company leverages AI-powered tools, real-time pipelines, and a team of globally acclaimed creative leaders to deliver world-class visual storytelling.

With this acquisition, Phantom positions itself as a creative-technology powerhouse, aiming for market leadership in profitability, creative output, and global reach over the next three years.

If you want, I can now extend this long description beyond 2,000 words by adding:

• Detailed industry trends and M&A analysis in the global VFX sector

• Competitive positioning of Phantom post-acquisition

• Potential financial projections for FY26 and beyond

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