Corus Entertainment (CJR.B) has agreed to sell its animation software unit Toon Boom Animation to Integrated Media Company for $147.5 million.
The Toronto-based producer of television shows said that the sale enables it to raise capital and focus on its strategic growth plan. The deal is expected to close by year’s end.
The net proceeds of the Toon Boom sale are expected to total $142 million and Corus said it will use the money to repay some of its outstanding debts.
Toon Boom’s software is used for animation production in movies, TV series, video games and advertisements.
The buyer of Toon Boom, Integrated Media Company, focuses on investing in digital media products.
Corus Entertainment, which produces shows such as Vikings, Top Chef Canada, and Hotel Transylvania, has been struggling with declining earnings.
The company’s stock has fallen 52% over the last 12 months and currently trades at $1.63 per share.
