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The largest independent animation studio in Wales is looking to expand after securing funding. Finance Wales has invested £600,000 in Calon, which specialises in animation and children’s TV. In return, Finance Wales has a minority stake in the company. 

The investment will be used for expansion through organic growth and acquisitions. It will also enable Calon to develop new animations and live action children’s drama, while moving into markets such as gaming and online content distribution.

Calon will use the funding to push the technical boundaries of animation, according to Finance Wales’ investment director Peter Wright. “The animation industry is changing at a phenomenal pace,” he said.

BAFTA award-winning Calon is behind popular children’s shows including
SuperTed, Hilltop Hospital and Sali Mali. “We want to convert this track record into a library of rights. We also need to embrace new digital platforms, and are looking to acquire companies to help with this,” managing director Robin Lyons said.

“This significant funding from Finance Wales gives us the ability to stretch ourselves beyond what’s been possible in the past. It gives us the chance to take more control over the intellectual property rights we create and to expand on our slate of projects.”

Aled Walters, corporate and media partner at MLM Solicitors, has a long-standing relationship with Calon’s senior management. Indeed, the deal is the latest in a long line of Finance Wales investments where MLM has acted for the investee company. Walters added: “This investment will enable Calon to move forward to the next phase in its development and assist in its plans for further expansion within the UK.”

Chartered accountant Watts Gregory, which specialises in the media sector, performed financial due diligence for Finance Wales. To Lindsay Hogg, who led its team, Calon’s history was important to the deal: “A key element of our work focused on the intellectual properties and other assets acquired as a result of the MBO.”

Cardiff-based Calon has also taken part in three EU research programmes focusing on the development of animation software. The company was founded after the management buy-out of Siriol Productions, a subsidiary of Entertainment Rights plc. It now employs some 40 people and its programmes are broadcast in more than 100 countries.

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