Knightscove to Acquire Ellis Entertainment

TORONTO: Canadian distributor Knightscove Media Group, which owns a library of family-friendly content, has entered into an agreement to acquire Ellis Entertainment for C$2.82 million.

The purchase price consists of C$1.5 million in cash, with the balance made of of Knightscove stock. The transaction is due to close at the end of this month. Knightscove announced in April of last year that it had signed a non-binding letter of intent to acquire Ellis Entertainment. The company, which has been in business for 45 years, owns the rights to about 600 titles, covering the wildlife and nature genres as well as other factual fare and entertainment shows. It also operates VisionTV International, a joint venture with Canadian specialty broadcaster VisionTV. Knightscove owns the DVD distributor Morningstar, which is expected to manage the Ellis catalogue in the U.S. market.

"Our stated goal from the beginning has always been to build Knightscove as an international leader in the distribution and creation of family friendly content," said Leif Bristow, Knightscove’s president and CEO. "Our recent acquisition of the U.S. VOD network KIDMAZING (being re-branded as KnightTV) and its base of 10 million households give greater significance to the Ellis acquisition and underscores Knightscove’s strategic vision. We will now be able to program much of the Ellis catalogue onto our own network and then further exploit these products on DVD throughout North America from our DVD division. Producers from around the world require access to U.S. airwaves. Ellis has developed a strong presence over the past 45 years internationally as a television sales company. Having KnightTV will create a magnet effect assisting in broader distribution rights to be leveraged by all Knightscove divisions. Having Ellis Entertainment and Stephen Ellis become part of this shared vision will demonstrate to the industry and our shareholders our commitment to growth through strategic business combinations. We believe that the synergies by working from the same offices will increase profitability and provide new and enhanced opportunities to increase overall revenues."

Stephen Ellis, the president and CEO of Ellis Entertainment, added: "This represents a tremendous opportunity to take the company founded in 1964 by my father, Ralph, to the next level and position the group for growth. We’re very pleased to have found a vision of the future in common with Knightscove, matched by unparalleled strategic benefits."