Canada-based Corus Entertainment has sold animation software company Toon Boom Animation for approximately $147.5 million CAD (About US$ 111.72 million) in cash, to a private company.
New York-based Integrated Media Company (IMC) has entered into an agreement with Corus’ wholly-owned subsidiary Nelvana to acquire Montreal-based Toon Boom, whose customers include Disney Television Animation, Amazon, Fox Television Animation, Nelvana, Toei Animation, The SPA Studios, Xilam and Boulder Media among others. IMC – which is acquiring the 2D software company – is a TPG company, dedicated to the new media ecosystem and investing across the digital media landscape.
Corus announced that this transaction is expected to generate net proceeds of approximately $142 million CAD to the company, which will be used to repay outstanding bank indebtedness. The transaction is expected to close in late 2023, and Corus will work closely with IMC to support a smooth transition.
“Corus is building a powerful multiplatform business aggregating premium video content,” said Corus Entertainment EVP of content and corporate strategy Colin Bohm. “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.”
“We are excited to collaborate with the team at Toon Boom to expand their platform into new markets and to introduce ground-breaking products,” said Yuning Zhang, who led the transaction for IMC.
Founded originally in 1994, Corus purchased a 50 per cent interest in Toon Boom in 2004 and acquired the remaining 50 per cent in 2012. Toon Boom is the global standard for animation, storyboarding and pipeline management. It offers products like Storyboard Pro and Harmony, and has been used in the production of Disney’s Tangled, the Oscar-winning short Hair Love, Annie Award-winning Klaus, and Makoto Shinkai’s Weathering with You, among many others.
Corus Entertainment is a media and content company that develops content across platforms for television, digital and streaming platforms, also providing technology and media services.