A business deal that would have seen Saban Capital Acquisition acquire both Sim and Panavision has been terminated, the companies announced Thursday.

The news comes fives months after Saban Capital, a special-purpose acquisition company that trades publicly on the Nasdaq stock exchange, announced it had entered into an agreement to acquire both L.A.-based camera company Panavision and Toronto-based services provider Sim.

According to Sim president and CEO James Haggarty, the deal was terminated due to the volatility of the U.S. stock market, as well as time constraints caused by the partial U.S. government shutdown in January, which would have made it difficult to complete the transaction by the March 31 deadline.

“Despite the merits of bringing the two operating companies of Sim and Panavision together under common ownership, the timing of doing so as a public company was just not right,” said Haggarty in a statement.

“The decision to end the agreement was a difficult one because all parties believed in the benefits of the combined company,” he added.

When the deal was first announced, media mogul and Saban Capital chairman Haim Saban said the combined entity was designed to “capitalize on explosive growth in content spending.” The companies also valued the combined entity at USD$622 million (inclusive of debt).

With the collapse of the deal, Sim will continue to operate as a separate business entity. The company has been active in the M&A market in recent years, most recently adding Vancouver studio The Crossing Studios to its portfolio of companies. In October 2017, Sim rebranded its founding companies, including Toronto-based Tattersall Sound & Picture and Pixel Underground, under the Sim banner. At the time it organized the company into four divisions: Sim Studios, Sim Lighting and Grip, Sim Camera and Sim Post.