Headwaters MB Advised Clearlake Capital on the Recapitalization and Acquisition of 3ality Digital,  the leading provider of 3D production technology and specialized equipment to the film and television industry. In connection with the transaction, Clearlake has acquired the majority of the newly-issued preferred stock of the company and will own a majority of the voting shares of 3ality Digital. 3ality management also participated in the transaction. Additional terms were not disclosed.

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About Clearlake Capital Group
Clearlake Capital Group, L.P. is a private investment firm focused on special situations such as corporate divestitures, recapitalizations, buyouts, restructurings, turnarounds and other equity investments. Clearlake seeks to partner with world-class management teams by providing patient, long-term capital and operational expertise to invest in businesses going through change. Clearlake's founding principals have led over 50 investments totaling more than $2.7 billion of capital in sectors including business services, communications and media, energy and power, healthcare, manufacturing, retail/consumer and technology. For more information, please visit www.clearlakecapital.com.

About 3ality Digital
3ality Digital™ enables the world to power live-action stereoscopic 3D (S3D) through the most advanced evolutionary technology available. 3ality Digital systems are currently deployed for the productions of Peter Jackson's THE HOBBIT: An Unexpected Journey, and Bryan Singer's JACK THE GIANT KILLER. The technology was also employed for Sony Pictures' THE AMAZING SPIDER-MAN, directed by Marc Webb. 3ality Digital's camera platforms are earning a reputation as the "S3D Gold Standard©" for the emerging medium of stereoscopic visualization. 3ality Digital engineered some of the world's first S3D cinematic and broadcast achievements, including U2 3D (the movie), and the first live S3D broadcasts from the NFL, BCS Championship, BSkyB, the Super Bowl, and NBC television. For more information, please visit www.3alitydigital.com.