Xilam enters into exclusive negotiations to acquire majority stake in Cube Creative
MUMBAI: Xilam Animation, an independent producer and distributor of animated content, has entered into exclusive negotiations for the acquisition of 50.1% of the shares and voting rights of Cube Creative, a French animation production company specialising in computer generated images and 3D.
In line with its strategy of accelerating production of CGI animated programming, this acquisition would bring to Xilam a team of unique talents with expertise in these cutting-edge technologies, whose positioning and brand image have strong roots in the market. The proposed acquisition would allow Xilam to continue to increase the delivery of its animated content and accelerate this process over the medium term.
Xilam Chairman and Chief Executive Officer Marc du Pontavice observed, “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 have 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 an integrated digital animation studio working across a wide variety of formats: shorts, clips, adverts, large screen 3D films, series, and features. Its clients include famous brands such as Cartier, Lu, Total, Kelloggs, and Skoll as well as amusement parks and major French TV channels.
For a number of years now, Cube Creative has successfully developed proprietary productions such as the Athleticus series (broadcast on Arte), Kaeloo (on Canal+, Teletoon+ and C8), Tangranimo (in production for France television) and Pfffirates (in production for TF1). It also has a number of high-quality projects in development.
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% 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.
Cube Creative co-founder Lionel Fages 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.”