WildBrain Ltd. has closed its previously announced acquisition of House of Cool, a pre-production company in the global animation industry. “We’re delighted to close our acquisition of House of Cool and to officially welcome Wes, Ricardo and their talented team to WildBrain," Josh Scherba, President and CEO of WildBrain, said.
Under the agreement, WildBrain has acquired full ownership of House of Cool for $15.5 million, with $10.25 million through the issuance of 4,479,406 WildBrain shares, and the remainder in cash. In addition, the deal includes potential earn-out of up to $6 million based on collection of certain tax credits, earned by House of Cool up to closing.
As a result of the acquisition, House of Cool Executives and Co-founders, Wes Lui and Ricardo Curtis will now work alongside WildBrain Studios senior management team in the newly created roles of Co-General Managers of House of Cool. The acquisition was made to significantly expand and enhance the Company’s pre-production capabilities for premium animated series, specials and features."House of Cool is recognized as one of the very best pre-production houses in the global animation industry, and this highly complementary acquisition meaningfully broadens and deepens WildBrain’s capabilities for both our own and partner productions," Scherba said.
The House of Cool brand will be placed as a distinct identity under the WildBrain banner. The Toronto-based pre-production company, founded in 2004, is responsible for the early planning stage of features and series and creating the blueprint for the launch of full production. It is credited with assisting leading studios, platforms and IP owners, and contributing to more than 20 theatrical films, which have collectively grossed over US $6.23 billion of box office receipts.
Some of the popular titles House of Cool has worked on include "Despicable Me" for Illumination, "The Angry Birds" franchise for Rovio and Sony Pictures Animation and "The Peanuts Movie," among various others. “We’re incredibly excited to conclude the acquisition process and to have officially joined forces with the brilliant team at WildBrain," Lui and Curtis said. "There are great opportunities ahead, as we continue to offer our clients world-class pre-production services, while also collaborating with WildBrain on their extensive catalog of content and the creation of exciting new IP. Our combined strengths make us a potent creative force in the animation industry.”