Corus Entertainment Inc. says it has signed a deal to sell its Montreal-based animation software subsidiary Toon Boom Animation Inc. to Integrated Media Company (IMC) for $147.5 million in cash.
Colin Bohm, executive vice-president of content and corporate strategy at Corus, says the move will free up capital, increase the company’s financial flexibility and sharpen its focus.
Toon Boom’s software is used for animation, storyboarding and production management.
Founded in 1994, Corus bought a 50 per cent stake in Toon Boom in 2004 and acquired the remaining interest in 2012.
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 per cent at $1.56 in early trading on the Toronto Stock Exchange.