Xilam Animation has entered into exclusive negotiations to acquire a controlling stake of the shares and voting rights of the French animation production company, Cube Creative. Talks are ongoing for the purchase of 50.1 per cent of shares in the company that specialises in 3D animation.
In line with its strategy of accelerating production of CGI animated programming, the acquisition would bring a team of unique talents with expertise in cutting-edge technologies to Xilam. The proposed acquisition would allow Xilam to continue to increase delivery of its animated content.
Marc du Pontavice, Xilam’s chairman and chief executive officer, said: “This first acquisition proposal fits perfectly with our business plan and will strengthen our strategic lead thanks to Cube Creative’s unique expertise in cgi animation.
“The excellent reputation of the company’s teams has been built on their creativity, their adaptability and their complete mastery of the latest technologies. We are impatient to begin working alongside them to contribute to the production of our future global hits.”
Founded in 2002 and based in Levallois-Perret (Hauts-de-Seine), Cube Creative is a digital animation studio working across a wide variety of formats: shorts, clips, adverts, large screen 3D films, series and features. Its clients include brands such as Cartier, Lu, Total, Kelloggs and Skoll as well as amusement parks and major French TV channels.
The acquisition, which is expected to be settled in cash, will adopt the entrepreneurial approach favoured by Xilam Animation. The founding directors will retain 49.9 per cent of the capital and will remain fully operational within the company.
By joining forces with Xilam, Cube Creative, whose average annual revenue over the last three years has been around €5 million, will benefit from the editorial reputation as well as from the commercial strength of Xilam in France and abroad; but also from its excellent access to digital platforms and from its expertise in digital marketing.
Xilam and Cube Creative intend to conclude this acquisition before the end of the current year, with full consolidation in Xilam’s financial statements in 2020.
Lionel Fages, co-founder of Cube Creative, concluded: “With the teams here at Cube Creative preparing to pull off the challenge of building on our role as an upscale service provider to add the creation of IP and proprietary production, we are looking forward to joining the Xilam Animation group with pride and enthusiasm.
“This move will give us access to editorial and marketing expertise in the global market. Our teams and talents represent an excellent fit and our combined expertise will allow the group to become even more innovative in its production and to tackle new challenges together.”