Corus Entertainment’s Nelvana Limited has entered into a deal to sell its Emmy Award-winning Montreal-based animation software business for around $147.5 million CAD in cash.
Leading Canadian media company Corus Entertainment today announced that its wholly-owned subsidiary, Nelvana Limited, has entered into a definitive agreement with Integrated Media Company, a TPG platform dedicated to the new media ecosystem, which will acquire Nelvana’s wholly-owned subsidiary, Montreal-based animation software company Toon Boom Animation, for approximately $147.5 million CAD in cash.
Toon Boom’s Emmy Award-winning software is the global standard for 2D animation, storyboarding and pipeline management. Its software is used to produce film and TV shows by top companies throughout the animation industry, including Bento Box, Boulder Media, Brown Bag Films, Cartoon Network, FOX, Lucasfilm, and Toei Animation, among others.
“Corus is building a powerful multiplatform business aggregating premium video content,” said Colin Bohm, EVP of Content and Corporate Strategy, Corus Entertainment. “After an enterprise-wide review of our operating model and asset base, we have decided to exit the animation software business. This move will free up capital, increase Corus’ financial flexibility, and sharpen our focus as we advance our strategic plan and priorities.”
“Toon Boom and its exceptional team have built a leading solution for content creators the world over,” continued Bohm. “We appreciate their contributions to the Corus content portfolio and will work closely with IMC to support a smooth transition.”
Corus purchased 50% of Toon Boom in 2004, acquiring the remaining 50% in 2012. Toon Boom has grown steadily since, with an expanding roster of global clients that includes many of the world’s leading animation studios, universities and colleges. This transaction will allow Toon Boom to further accelerate its growth within IMC, a global company with expertise in the digital media landscape. IMC properties include Fandom, Gamespot, Screen Junkies, and TV Guide.
“Toon Boom empowers creators of all types to bring their stories to life through a versatile platform that offers powerful storyboarding, extensive animation capabilities, and tools for streamlining the production process,” said Yuning Zhang, who led the transaction for IMC. “With a best-in-class product, Toon Boom has established itself as an innovative market leader with a best-in-class product suite. Its exceptional tools are trusted by both large and small creative teams, as well as educational institutions shaping the next generation of talent. We are excited to collaborate with the team at Toon Boom to expand their platform into new markets and to introduce ground-breaking products.”
The transaction is expected to close later in calendar 2023 and is subject to customary adjustments and closing conditions in the jurisdictions where the parties do business. The transaction is expected to generate net proceeds to Corus of approximately $142 million CAD, which will be used to repay outstanding bank indebtedness.
LionTree Advisors acted as exclusive financial advisor to Corus and the law firm of McCarthy Tétrault LLP represented Corus on this transaction. Weil, Gotshal & Manges LLP and Davies Ward Phillips & Vineberg LLP served as legal counsel to IMC on this transaction.
Source: Corus Entertainment
Dan Sarto is Publisher and Editor-in-Chief of Animation World Network.
