Quick Summary: PhantomFX has completed the acquisition of US-based Tippett Studio, a visual effects company with approximately ₹60 crore (USD 7 million) in revenue and a 22% profit margin in 2024. The acquisition is expected to drive 65–70% inorganic growth for Phantom, which has recorded a 66% CAGR over the last three years. Tippett will operate as a separate brand under Phantom, while the combined global network spans the US, India, and China. The move positions Phantom to scale operations in high-demand VFX markets, with an additional ₹160 crore ($20 million) annual revenue potential from the APAC region.
Full Article: Phantom Digital Effects Limited has formally announced the acquisition of California-based Tippett Studio, a long-established visual effects company. The move is part of PhantomFX’s strategy to expand its global presence in the VFX sector.
Tippett Studio, founded by visual effects supervisor Phil Tippett, has been involved in multiple high-profile Hollywood productions. The studio will continue to operate as a distinct brand under Phantom Group while integrating parts of its proprietary animation pipeline into Phantom’s existing production systems.
Phantom has reported a compound annual growth rate (CAGR) of 66% from FY2022 to FY2025. With the acquisition of Tippett, the company expects to add 65–70% growth through inorganic expansion. Tippett recorded revenue of approximately USD 7 million (INR 60 crore) in 2024 with a profit margin of 22%. The acquisition is expected to improve Phantom’s overall margin profile due to higher realisation rates and a more favourable working capital cycle.
The integration also includes a geographic restructuring of operations. Tippett Studio will act as the creative front-end and client liaison hub in the United States. Phantom’s India operations will continue as a central production facility, while the China unit will serve the Asia-Pacific region with the potential to generate an additional USD 20 million in annual revenue. A fourth unit, Spectre Post, will handle high-volume post-production tasks such as rotoscoping and paint work, particularly for low-budget productions.
The transaction comes amid rising global demand for VFX services from streaming platforms and film studios. The industry is undergoing changes due to the adoption of virtual production, AI-enabled tools, and the post-strike recovery in international content pipelines. Phantom expects the combination of Tippett’s brand and its own production infrastructure to provide competitive advantages in this evolving environment.
In addition to this acquisition, Phantom is in talks to acquire a European VFX studio with significant revenue contributions. The company is also investing in virtual production capabilities, artificial intelligence for post-production processes, development of animated intellectual properties, and visual content for gaming platforms.