Integrated Media Company to Acquire
Emmy® Award-Winning Montreal-based Animation Software
Business for Approximately $147.5
million
TORONTO, July 13,
2023 /PRNewswire/ - Corus Entertainment Inc. ("Corus"
or the "Company") (TSX: CJR.B) today announced that its
wholly-owned subsidiary, Nelvana Limited ("Nelvana"), has entered
into a definitive agreement under which Integrated Media Company
("IMC"), a TPG platform dedicated to the new media ecosystem, will
acquire Nelvana's wholly-owned subsidiary, Montreal-based animation
software company Toon Boom Animation Inc. ("Toon Boom") for
approximately $147.5 million CAD in
cash.
"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."
Toon Boom's award-winning software is the global standard for 2D
animation, storyboarding and pipeline management. It provides
solutions for everyone from enthusiasts to professionals, giving
them the artistic freedom to create in any style and efficiently
publish anywhere, as well as providing real-time management for
animated projects.
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 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, an
Emmy® award-winning company, to further accelerate
its impressive growth streak within IMC, a global company with
expertise in the digital media landscape.
"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.
About Toon Boom Animation
Inc.
Toon Boom Animation Inc.'s award-winning software is the global
standard for animation, storyboarding and pipeline management.
Storyboard Pro and Harmony solutions provide everyone from
enthusiasts to professionals with the artistic freedom to create in
any style and efficiently publish anywhere, while Producer provides
real-time management for animated projects. Customers who chose
Toon Boom animation software for the development and creation of
their productions include Disney Television Animation, Amazon, Fox
Television Animation, Nelvana, Toei Animation, The SPA Studios,
Xilam and Boulder Media, to name a few. The technology is currently
available in English, Spanish, Japanese and Simplified Chinese. For
more information, visit: toonboom.com.
About Integrated Media
Company
Integrated Media Company, LLC is a TPG portfolio company
thematically investing across the digital media landscape. Launched
in 2018, IMC's mandate is both financial and strategic, providing
greater flexibility with regards to investment size, term and
portfolio construction. IMC's investments are oriented in
verticals, allowing for additional acquisitions and organic
investment in pursuit of growth.
About Corus Entertainment
Inc.
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and
content company that develops and delivers high quality brands and
content across platforms for audiences around the world. Engaging
audiences since 1999, the company's portfolio of multimedia
offerings encompass 33 specialty television
services, 39 radio stations, 15 conventional television stations,
digital and streaming platforms, and technology and media
services. Corus is
an internationally-renowned content creator and
distributor through Nelvana, a world
class animation studio expert in all formats and Corus
Studios, a globally recognized producer of hit scripted and
unscripted content. The company also owns full-service social
digital agency so.da, lifestyle entertainment company Kin
Canada, and children's book publishing house, Kids Can
Press. Corus' roster of premium brands includes Global
Television, W Network, HGTV Canada, Food Network Canada, Magnolia
Network Canada, The HISTORY® Channel, Showcase, Adult
Swim, National Geographic, Disney Channel Canada, YTV, Global
News, Globalnews.ca, Q107, Country 105, and CFOX, along with
streaming platforms STACKTV, TELETOON+, the Global TV App and
Curiouscast. Corus is the domestic advertising representative and
an original content partner for Pluto TV, a Paramount Company,
which is the leading free ad-supported streaming television (FAST)
service. For more information visit www.corusent.com.
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SOURCE Corus Entertainment Inc.