Lions Gate Entertainment Corp. (NYSE:LGF) has acquired independent production and distribution company Mandate Pictures in a cash and stock deal worth approximately US$56.3 million.
The deal could potentially yield several strategic benefits. They include expanding Lions Gate's ability to secure international film rights, expanding the company's film library and adding Mandate's executive expertise.
The deal marks the return of former Lions Gate executive Joe Drake to the studio as co-COO and president of the company's motion picture group. Drake will also oversee Lions Gate's theatrical production, distribution, marketing, acquisition and international operations.
Mandate, which is based in Beverly Hills, California, has been responsible for a number of successful productions, including Stranger than Fiction starring Will Ferrell, The Grudge, Boogyman and the Grudge II with Ghost House Pictures.
Lions Gate will finance the deal with US$44.3 million in cash and US$12 million in Lions Gate stock to be released over an 18-month period.
Lions Gate's share price range during the past week: between $9.50 and $9.26; 52-week high: $12.11; 52-week low: $8.85.