Canadian mass media company Corus Entertainment has sold its Montreal-based animation software subsidiary Toon Boom Animation to New York-based private equity firm Integrated Media Company (IMC) for $147.5 million in cash.
“Corus is building a powerful multi-platform business aggregating premium video content,” says Colin Bohm, exec VP of content and corporate strategy. “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,” added Bohm. “We appreciate their contributions to the Corus content portfolio and will work closely with IMC to support a smooth transition.”
Toon Boom’s Emmy-winning software is one of the most popular tools used for 2D animation, storyboarding and pipeline management. It provides solutions for enthusiasts and 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 percent interest in Toon Boom in 2004 and acquired the remaining 50 percent 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.
“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.
Corus says the deal is expected to generate about $142-million in net proceeds that will be used to repay debt. Shares in Corus were up 20 cents or nearly 15 percent at $1.56 in early trading on the Toronto Stock Exchange.
