GrowthGate Acquires Part of Leading Digital Content and Animation
Firm ?Rubicon?
DUBAI, United Arab Emirates--(BUSINESS WIRE)--GrowthGate
Capital Corporation, the GCC based specialist buyout firm, announced
that it has reached a final agreement to acquire 30% of Rubicon, MENA?s
leading digital content production & animation company. Rubicon is a
pioneer in k-12 education content, currently used in many countries
across the region such as Jordan, Oman, Algeria and Morocco. The company
has the largest 2D and 3D animation studio in the Middle East, and is
executing location-based entertainment projects in two destinations of
above a billion dollars development budgets. Rubicon is also involved in
the licensing and merchandizing business of its own IP in addition to
the IP of major studios and independent parties in the U.S. In October
2008, MGM
studios and Rubicon announced that they are producing new episodes of
MGM's Pink Panther series to air on Cartoon Network channels worldwide.
The 78 episodes are scheduled to be completed end of 2009 while talks
about production of subsequent seasons of the Pink Panther & Pals are
currently underway. Rubicon is the creator of ?Ben & Izzy? a successful
children TV series that aired in Ramadan 2008 on MBC.
The series is based on the adventures of two youngsters: one American
and one Arab who travel back through ancient times and meet a glorious
band of scientists, travelers and poets, taking viewers on a fantastic
new journey in each episode. ?Ben & Izzy? is a contestant at the
International Emmy?s under the Children Category Award at the 2009
Cannes Festival. Rubicon has recently also started the production of
a 3D CG theatrical movie about the ?Life and Adventures of Santa Claus?
for worldwide release in December 2011. Rubicon operates out of Amman,
Dubai, L.A., and Manila. The company forecast revenues for 2010 are in
excess of $100 million, and it plans to invest circa US$M75 over the
next three years in various productions. Both GrowthGate and Rubicon
being privately held, the value of the transaction was not disclosed.
Ms. Randa Ayoubi, founder and CEO of Rubicon stated: ?We are very
excited to partner with GrowthGate whom we found to be an investor with
vision and foresight, not just a financial investor. GrowthGate with its
forward-thinking mandate, professional management and results-driven
ethos, seems to be a nurturing ground for regional champions, something
that is still largely lacking in the Middle East?. Ms. Ayoubi added:
?The animation landscape in the Middle East, as well as, edutainment has
not taken centre-stage in the boom times of 2005-2007. Other sectors
overshadowed the opportunities that lay ahead in this growing segment
which addresses hundreds of thousands of students and millions of young
viewers?. The industry remains fairly untapped and the estimated pent up
demand for animation in the region remains significant. In recent years
(2007) Dubai launched the Maya
Academy of Advanced Cinematics (MAAC) to provide students training
through different courses; and Jordan has established the Red
Sea Institute of Cinematic Arts, chaired by Ms. Ayoubi, in
partnership with the University
of Southern California - School of Cinematic Arts. Further
commenting on this transaction, Ayoubi said ?The creative value chain of
Rubicon is quite unique in the emerging markets where few animation
firms combine creative content with high-quality production capacity,
proprietary IP developments and; co-partnership projects with major US
animation studios?.
GrowthGate -managed by Keystone - follows a ?buy and build? investment
strategy that is set on partnering with the management of
growth-orientated businesses and, together, steering their courses into
becoming enduring, large-scale organizations. This deal marks the fifth
direct equity investment by GrowthGate since its capitalization in mid
2007, and the first in the ?Edutainment & Animation? sector.
GrowthGate?s portfolio companies already comprise: Able Logistics Group
(logistics & transport), Gama Aviation Holding (managed-private jets and
aviation services), Roots Group (construction-related materials); and
Averda International (environmental & waste management services).
Source: ME
Newswire
GrowthGate
Paula Rizk, +961-1989400
Corporate Manager
paularizk@keystone-rp.com
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