DHX Media to buy Nerd Corp for about $50 million
TORONTO (Reuters) - DHX Media Ltd DHXa.TO, which produces children's entertainment shows, said on Tuesday it has agreed to buy privately held Nerd Corps Entertainment for about C$57 million ($50 million), in a move to expand its library.
Halifax-based DHX said the deal will bring many hours of proprietary children's content to its library, including the hit comedy adventure series "Slugterra," which has been broadcast in over 150 countries and is one of the most popular titles on the Disney XD channel in both Canada and the United States.
"This acquisition not only brings us Nerd Corp's library, but also the talent behind it, strengthening our ability to offer brands targeted at key audiences," DHX Media's chief executive, Dana Landry, said in a statement.
DHX is known for brands such as Caillou, Yo Gabba Gabba and Teletubbies, among others. It owns the Family Channel, the most-viewed children's television channel in Canada, as well as the Disney Junior and Disney XD channels in Canada.
Under the acquisition agreement, DHX will pay up to C$32.7 million in cash for Nerd Corps, with the remainder paid in the form of equity.
DHX shares jumped 4.4 percent on news of the deal and ended up 39 Canadian cents at C$9.35 on the Toronto Stock Exchange.
DHX expects the deal to close before the end of the year.
(Reporting by Euan Rocha; Editing by Leslie Adler)
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