(Toronto) Corus Entertainment said Thursday it has signed a deal that will see it sell its Montreal-based animation software division to Integrated Media Company (IMC) for $147.5 million in cash.

Corus vice president of content and corporate strategy, Colin Bohm, said the transaction would free up capital, increase the company’s flexibility and allow it to focus more on its core businesses.

Toon Boom’s software is used for animation, storyboards and production management.

Corus bought a 50% stake in Toon Boom in 2004, 10 years after its founding, then took over the remaining stake in 2012.

The deal is expected to generate net proceeds of approximately $142 million, which will be used to repay debt, Corus said.

Company in this story: (TSX: CJR.B)