New York-based investment firm Integrated Media Company (IMG) has agreed to purchase Canadian media company Corus Entertainment’s animation software developer Toon Boom Animation.

Corus will generate around US$112.4 million (CAD$147.5 million) from Toon Boom’s sale, which it will use to repay outstanding debts, according to a release. The transaction is expected to close before the end of the year.

“After an enterprise-wide review of our operating model and asset base, we have decided to exit the animation software business,” said Colin Bohm, Corus’ EVP of content and corporate strategy. “This move will free up capital, increase Corus’ financial flexibility, and sharpen our focus as we advance our strategic plan and priorities.”

IMC’s VP Yuning Zhang is leading the transaction, and will focus in the short term on expanding Toon Boom’s platform to new markets and developing more tools for animation studios. The software developer’s suite of subscription-based products—including Harmony 22, Harmony Gaming and Storyboard Pro—is used by prodcos, universities and independent animators.

Corus bought a 50% stake in Toon Boom in 2004, and picked up the remainder in 2012. The developer has racked up an extensive roster of global clients since its launch in 1994, including Disney (The Princess and the Frog), Warner Bros. Discovery (Space Jam: A New Legacy) and Paramount (The SpongeBob SquarePants Movie). 

On closing, Toon Boom will be IMC’s first acquisition this year. Last year, the firm purchased entertainment industry publications GameSpot and TV Guide; London-based football magazine Mundial; and Virginia-based e-commerce firm The Fascination.