Cinesite has acquired Montreal-based studio L’Atelier Animation to expand its production capacity and tap into Canada’s tax credits.

CG specialist L’Atelier has produced projects including Netflix animated series Robozuna and the family-friendly feature film Fireheart with eOne Films, Main Journey and Caramel Films.

The purchase will help Cinesite better meet a growing global demand for animation that targets young audiences, according to a news release. L’Atelier GM Benoit Blouin and Cinesite COO Bradley Wald will work together to merge the two companies and scale Cinesite’s feature film and TV series production pipeline.

London-based indie Cinesite has delivered 10 animated feature films to date, including Paramount Pictures’ recent martial arts comedy Paws of Fury: The Legend of Hank and MGM’s 2019 animated reboot The Addams Family. As it gears up for more production, including a six-part Disney+ series called Iwaju, the company is looking to take advantage of Canada’s tax credits.

In Quebec, projects with a minimum total budget of around US$200,000 can access tax credits of 20% on all production expenditures, according to the Quebec Film and Television Council. For animation and VFX, an additional 16% credit applies.

The L’Atelier acquisition is Cinesite’s latest move to expand its business operations. In February, the company hired former Laika and NBCUniversal exec Bradley Wald as its first-ever animation COO. And back in 2019, it received US$112 million in capital investment from a consortium of financial firms.