BURBANK, CA – August 22, 2016 – Cast & Crew Entertainment Services, the premier provider of technology-enabled payroll and production-management services to the entertainment industry, today said it has completed its previously announced acquisition of CAPS Payroll, a leading payroll provider spanning multiple entertainment markets including commercial production, venues, music tours, live events, unscripted television and independent film.
As previously disclosed, Silver Lake, the global technology investing leader and controlling shareholder of Cast & Crew, committed substantial additional equity to fund the acquisition and support Cast & Crew’s continued growth. Following its acquisition by Silver Lake in mid-2015, Cast & Crew has accelerated investments to extend its technology leadership and to strategically align itself for the industry’s digital future. In addition to the acquisition of CAPS, itself a technology pioneer in the entertainment subsectors it serves, Cast & Crew’s other recent investments include the release of new and advanced digital workflow solutions and the acquisition of screenwriting software leader Final Draft, Inc.
Cast & Crew, a trusted partner to major and independent film and television studios, as well as new media producers, provides clients with a robust portfolio of technology-enabled products and services. Its capabilities include entertainment payroll and residuals processing; products such as its industry-leading PSL production accounting software; workers’ compensation programs; and financial services, including production incentive financing, consulting and administration. The company, which is celebrating its 40th anniversary this year, has built a preeminent market position through decades of unwavering focus on client service.
CAPS has a rich 25-year history and provides end-to-end production payroll and accounting solutions for clients of all sizes. The company has particular expertise in commercial production, venues, music tours, live events, unscripted television and independent film, and is known for its technology innovation and strong commitment to customer service. It previously was a portfolio company of Verus Investment Partners, LLC (formerly known as Uni-World Capital, L.P.).
“Cast & Crew and CAPS bring complementary client bases, compatible technology portfolios and similar corporate cultures to this strategic combination. It’s an ideal fit,” said Eric Belcher, President and Chief Executive Officer of Cast & Crew. “With the closing of this transaction, our combined company can move forward and provide clients with the industry’s best suite of technology-enabled solutions and employees with expanded support, training and career opportunities.”
Belcher added that Cast & Crew, CAPS and Final Draft have been working together to develop an integration plan that will drive growth, while optimizing client service and innovation, across the combined company. “This is an especially compelling combination of three market leaders with very little overlap and a shared operating philosophy,” he said. “We are confident that, together, we will deliver client service and innovative new offerings superior to what any of the three companies could do on its own.”
Doug Sylvester, Chief Executive Officer of CAPS, reiterated that the combination of Cast & Crew and CAPS is a natural fit. “Everyone at CAPS is excited about the enormous opportunities ahead,” he said. “Cast & Crew and CAPS have the scale, expertise and commitment to innovation and customer service to lead the industry.”
“Silver Lake’s follow-on equity investment in Cast & Crew underscores our confidence in the company’s strategic direction,” added Joe Osnoss, Managing Director at Silver Lake. “With the CAPS acquisition, Cast & Crew is a clear leader in film, television and commercial production payroll and has superior capabilities and technologies to support clients in the dynamic media and entertainment marketplace.”
About Cast & Crew
Cast & Crew Entertainment Services, LLC (www.castandcrew.com) is the premier provider of technology-enabled payroll and production-management services to the entertainment industry. Cast & Crew’s services include payroll processing, residuals processing, workers’ compensation services, labor relations, production incentives and production tax credit financing. Cast & Crew’s PSL production accounting software is the industry-leading accounting application serving the needs of the film, television and digital media industries. The company was founded in 1976, and its corporate headquarters are in Burbank, California.
About CAPS Payroll
CAPS (www.capspayroll.com) is a technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours, and live events. CAPS offers cloud-based, end-to-end production payroll and accounting solutions that simplify payroll processing for clients of all sizes. The company was founded in 1991 and is headquartered in Culver City, California.
About Silver Lake
Silver Lake is the global leader in technology investing, with over $24 billion in combined assets under management and committed capital. The firm’s portfolio of investments collectively generates more than $120 billion of revenue annually and employs more than 250,000 people globally. Silver Lake has a team of approximately 100 investment and value creation professionals located in New York, Menlo Park, San Mateo, London, Hong Kong and Tokyo. The firm’s current portfolio includes leading technology and technology-enabled businesses such as Alibaba Group, Ancestry, Avaya, Broadcom Limited, Cast & Crew, Cegid, Ctrip, Dell, Fanatics, Global Blue, GoDaddy, Intelsat, Motorola Solutions, Quorum Business Solutions, Red Ventures, Sabre, Smart Modular, SolarWinds, Symantec, Vantage Data Centers, and WME/IMG. For more information about Silver Lake and its entire portfolio, please visit www.silverlake.com.
About Verus Investment Partners, LLC
Verus Investment Partners, LLC, formerly known as Uni-World Capital, L.P., is a private equity firm focused on making leveraged buyout and growth equity investments in lower-middle market companies. The firm seeks to partner with management teams where it can leverage the Verus team’s collective business experience, corporate relationships and strategic and financial expertise in order to help enhance a company’s strategic positioning and drive profitable growth. More information can be found at www.veruspartners.com.
CAPS Payroll is being acquired by Cast & Crew Entertainment Services, it was announced yesterday. The merger will create one of the largest and most dynamic payroll services companies in the entertainment space. “Cast & Crew’s purchase of CAPS unites two companies that share an unwavering commitment to technology innovation and customer service,” said CAPS CEO, Doug Sylvester. “We are delighted to join an organization with exceptional relationships and expertise in the entertainment industry, a deep commitment to customer service and a clear vision of where the market is going.”
The synergy between the two companies’ business practices and market orientations should allow the singled merged entity to thrive and become the most diversified entertainment payroll company in Hollywood. “Cast & Crew and CAPS are an ideal fit, with complementary client bases, compatible technology portfolios and consistent corporate cultures,” said Eric Belcher, President and Chief Executive Officer of Cast & Crew. “This combination will offer clients the industry’s best suite of technology-enabled solutions and expand support, training and career opportunities for employees of both companies.”.
On July 1st, 2016, the City of Los Angeles will see its first (of five) scheduled minimum wage increase to $10.50 per hour for employers with 26 or more employees. We have created a table below to help you track upcoming hourly minimum increases in Los Angeles over the next several years.
Lately, there has been a trend of local minimum wage rate increases. Employer size, geographic location, and even whether an employer is offering health insurance can be factors which affect minimum wage rates. It's important to review your current rates and policies to ensure that you remain compliant with local wage and hour laws. For your reference, here is a list of other minimum wage increases scheduled for July 1st, 2016:
For your convenience, CAPS ETC - our secure and digital time card solution - can automatically notify you when you attempt to apply an hourly rate which is below the designated minimum wage rate. For more information on how to set up these notifications or to request an ETC demo, please click here.
If you have any questions or would like to inquire about minimum wage rates in a specific location, please contact us at BusinessAffairs@capspayroll.com
Following the recent vote by SAG-AFTRA on the issue of 2016 Commercial Contracts, CAPS Payroll would like to provide you with a brief summary of the Contracts' content. These changes may significantly affect your operations.
On April 10, 2016, the SAG-AFTRA National Board unanimously approved the deal reached with the ANA-4A's Joint Policy Committee on Broadcast Talent Union Relations (JPC) on new television, audio and digital commercials contracts. Members will now be asked to ratify the agreements in the coming weeks.
Highlights of the deal include:
In addition, the new "Social Media" waiver was added:
- Unlimited spots may be recorded on one day for a single session fee, not credited
- 1 year Maximum Period of Use (MPU)
- 30-day use cycle - pay 15% of session fee per cycle for each spot exhibited
- Session Fee due in 15 business days (3 more days to pay)
CAPS will provide more details once the Contracts are ratified. If you have any questions, please contact Cast & Crew’s VP of Labor Relations, Shirley White. She can be reached at LaborRelations-Questions@castandcrew.com or (818) 972-3213.
The International Alliance of Theatrical Stage Employees (IATSE) represents workers in all forms of stage work, live theater, motion picture and television production, commercials, trade shows and exhibitions, television broadcasting, and concerts. The membership includes cameramen, editors, make-up artists, grips, and art directors, just to name a few. The IATSE is made up of dozens of independent Local Unions throughout the United States and Canada.
What is the Low Budget Agreement?
The current IATSE Low Budget Theatrical Term Agreement (LBA) is a 3-year contract that will expire on December 31, 2016. It covers feature film productions and was negotiated by the IATSE with the intent to attract more independent productions in the United States and Canada and to create more employment opportunities and increase benefits for their members. The contract is made up of Three Budget Tiers to align with the typically lower budgets associated with independent productions.
Three Budget Tiers are applicable for productions with budgets under $13,200,000*:
TIER ONE: $5,500,000 and below
TIER TWO: $5,550,001 - $9,350,000
TIER THREE: $9,350,001 - $13,200,000
*Production costs include above- and below-the-line costs, pre-production, production and post-production. The costs of the premium for the completion bond and the contingency fund not to exceed 10% of the budget shall NOT be included as part of the production costs.
Benefits to the Producer
There are several provisions in the LBA that can help reduce the costs of productions, including but not limited to:
Non-Union vs. Union Productions
If a non-union production hires IATSE members, there are several potential actions the IA may take, and it is important to consider their possible impact. They may try to negotiate directly with the production company for jurisdiction.
Rely on CAPS for Current Union Agreement Information
Because of the complexity of state laws and union rules, producers should work with an entertainment payroll expert who understands the regulations and can ensure the production is compliant. If your company is producing a feature with a budget of $13,200,000 or below, you can rely on CAPS to explain the details of the IATSE LBA prior to starting prep. CAPS can also guide you through the myriad of labor laws and payroll regulations, identify opportunities for minimizing costs, potential risks of contract violation and provide suggestions for how to avoid them, and assist with staffing questions, including use of the Industry Experience Roster.
For additional information, please contact Cast & Crew’s VP of Labor Relations, Shirley White. She can be reached at LaborRelations-Questions@castandcrew.com or (818) 972-3213.
This article does not, and is not intended to, provide legal advice or any guarantee of labor law compliance generally or in any particular circumstance. For legal advice, please contact your legal counsel.
We are pleased to announce that Todd Dyer, CAPS Payroll’s Senior Director of Venues, Music Tours & Festivals, has joined the Academy of Country Music (ACM) as a voting member. Nominated and sponsored by several renowned country music artists, Todd’s candidacy was approved by the ACM’s Board of Directors. As a voting member, Todd will take part in nominating and voting for the country music’s biggest names and up-and-coming stars in categories ranging from Artist of the Year, Performer of the Year, Album of the Year, and more. “I’m very excited to join the ACM,” said Dyer, “and look forward to contributing to its activities in showcasing the best of what country music has to offer.”
Founded more than 50 years ago, the Academy of Country Music is the largest association of the artists in the genre in the United States. With a stated mission to “improve lives by connecting fans, artists and the industry,” ACM hosts an annual Academy of Country Music Awards® to honor the biggest names and emerging talent in the country music industry. The 51st Academy of Country Music Awards® will take place in Las Vegas at MGM Grand Garden Arena on Sunday, April 3, 2016.
Please join us in congratulating Todd on this great honor. Todd can be reached at the following contact information.
Office: (310) 280-0755 x 2326
Mobile: (760) 688-8113
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