SF Studios buys majority stake in Quicksand’s prodco FLX

The commercially-oriented Swedish production house will continue to operate under its own brand, with founder Felix Herngren and MD Pontus Edgren at its helm.

The fast-expanding Swedish company FLX is a leading creator of high-end TV series such as Netflix’s Quicksand, SVT’s The Bonus Family, C More/TV4’s Solsidan, and blockbuster films including The 100-Year-old Man Who Climbed Out the Window and Disappeared and Solsidan-the Movie.

The company is currently owned by creative director Felix Herngren, managing director Pontus Edgren, writer Niclas Carlsson, together with Bonnier Ventures.

The deal announced today with Bonnier-owned SF Studios brings closer together the companies that were already collaborating since 2016 through an output distribution agreement.

Michael Porseryd, SF Studios CEO who becomes Chairman of the Board at FLX said. “We’ve worked together for several years through a distribution output deal on the feature film side, and this is the next step in bringing us together. To continue to lead and develop the film and TV industry together with them, will be very exciting and inspiring.”

Herngren and Edgren said: “We have run FLX together for the last six-seven years and it has been an incredible journey with a growth that we couldn’t even imagine. Now the time has come for a new chapter in our history. SF Studios is a very strong player in the Nordic region with international ambitions. With SF Studios as a majority owner in FLX, we will strengthen our opportunities within distribution and in addition increase our possibilities to bring FLX’s productions to the international market.”

The transaction between the two companies is waiting for approval from the Swedish Competition Authority.

In the meantime, FLX is in full speed with several high-end TV dramas currently playing and lined up for the rest of 2019.

• Youth-oriented thriller Quicksand (Störst of allt). Netflix’s first commissioned Swedish drama series-was launched on the giant US streamer on April 9 
• Dramedy Bonus Family (Bonusfamiljen) season 3 just finished airing on Monday on SVT 
• Crime comedy The Simple Heist (Enkelstöten) season 2 premiered on CMore April 1^st and starts airing May 8 on TV4 
• Financial thriller Blinded (Fartblinda) and hit comedy Solsidan season 6 are lined-up for the fall on CMore.

On the feature film side, the comedy Jönssonligan directed by Tomas Alfredson will be released by SF Studios later this year, and Comedy Queen based on Jenny Jägersfeldt’s August Prize shortlisted novel will start production in the fall 2020.

Short Q&A with Michael Porseryd, SF Studios CEO

Bonnier Ventures is shareholder in FLX and part of Bonnier Group with SF Studios. Can you explain in terms of shareholding how you will gain control of the majority of the stakes in FLX?
MP: We are acquiring the Bonnier Venture shares plus additional shares from the FLX founders to become the majority shareholders.

What is the value of the transaction?
MP: We have decided not to comment on the financial transaction but we will be majority owners, while FLX founders remain large minority owners.

Is the move part of your strategy to team up with the top talent and creators in the Nordics to remain a key player in the Nordics…  MP:  Yes as you say, our ambition is to be the leading studio in the Nordics and a leading studio in Europe. We therefore need the best talent and we’re very happy to work closely with the great FLX team. But FLX will not be integrated into our major group and will continue to operate under its own brand.

Isn’t this the case as well with Paradox in Norway that you acquired recently? MP: The strategic reason for our acquisition of Paradox in Norway was to establish our own production division, whereas in Sweden we already have our own in-house production and we will run FLX it as a separate company. With Paradox, the company is also operating separately under its own brand, although it will eventually become SF Studios Norway.  In Norway, besides Paradox, we have stakes in Filmkameratene and Motion Blur. Across the Nordics, we will continue to build a strong film slate from the theatrical distribution perspective through output deals with leading local players.

What makes FLX a unique asset for SF Studios?  MP: FLX has grown fast as a unique content creator of strong TV dramas and big blockbuster movies. It’s impressive that they can manage both sides so successfully. When we discussed with Pontus [Edgren] and Felix [Herngren] to enter as majority shareholder, they saw the opportunity for them to get support in their ambition to grow in the Nordics and in the English-language film and TV drama arenas.

On a global perspective, at a time of massive M&A activity among media groups and competition with major streamers, this agreement with FLX gives you a kind of safety net and reinforces your position on the scripted content market… MP: You’re absolutely correct.