Entertainment One to Complete Alliance Acquisition Shortly
The "Twilight Sage" distributor gets regulatory clearance in Canada, allowing it to complete the $230 million deal "as soon as possible."
Canadian producer/distributor Entertainment One said Thursday it would complete its proposed acquisition of Alliance Films "as soon as possible" after clearing a key regulatory hurdle.
The deal, worth approximately $230 million, required approval by the Canadian Competition Bureau.
Entertainment One said Thursday morning that the waiting period for the regulatory review has expired.
"Therefore the company is now clear to complete the acquisition, which it intends to do as soon as possible," it said. "A further announcement will be made in due course."
The deal will create the largest independent film distributor in the U.K. and Canada. The merged company will also have broader international reach across the U.S., Australia, the Benelux countries and Spain.
Entertainment One has released such films as The Twilight Saga franchise, We Need to Talk About Kevin and Tinker, Tailor, Soldier, Spy.
The merged entity will also have output deals in Canada with the likes of The Weinstein Company, Focus Features and Relativity.
Entertainment One first said it was negotiating a deal in May. Alliance owners Goldman Sachs Capital Partners and Investissement Quebec had picked the Bank of Montreal to find a buyer for Canada’s largest independent distributor.
Alliance's owners could get some additional money in the deal if certain films exceed certain box office performance targets.