In a deal struck to offer both companies an edge in animated tv production, Atlantis Communications has acquired a 50% stake in Calibre Digital Pictures, the Toronto service company currently producing special effects for Atlantis series’ The Adventures of Sinbad and Gene Roddenberry’s Earth: Final Conflict.

‘Atlantis and Calibre have a common goal ­ we’re both looking to develop, produce and sell animated programs,’ says Calibre president Neil Williamson who’s planning to use Atlantis’ equity injection and business savvy to launch its own slate of animated tv shows.

Atlantis acquired its interest in Calibre for less than the company’s projected 1997 revenue of $4 million, says chairman Michael MacMillan, noting the move was part of an overall plan to reduce Atlantis’ reliance on its live-action production and distribution business and enter the rapidly expanding animation arena.

Calibre isn’t expected to post an increase in revenue this year as a result of the deal. MacMillan and Williamson forecast the company’s growth will come over the next couple of years as it begins to produce proprietary programming.

Under the terms of the agreement, Atlantis has an option to acquire the remaining interest in Calibre at the end of three and a half years. Williamson also has the provision to retain his position as company president for another two years after a total buyout.

Calibre has the $200,000 to $300,000 per half-hour preschool property The Beezers in development, based on a community of 3D cg animated mole-like subterranean creatures, with over 40 toy prototypes in the works, as well as Dragons All Around, a $400,000 per half-hour 3D/cgi and cel-animated adventure series for eight- to 12-year-olds based on a book by Sherry Fitch.

Both projects are without a broadcaster and Williamson says he will shop the projects to Atlantis as a potential coproducer.

Calibre is also codeveloping a young adult comedy/variety show with New York-based Sunbow Entertainment. The combined cel, stop-motion and cgi animated series will ring in at just under $300,000 u.s. per half hour and Williamson plans to build a relationship with Atlantis’ releasing division to sell its proprietary products internationally.

Calibre is investing in $1 million worth of new studio gear to enhance the shop’s motion-capture capabilities and increase its rendering power, with the purchase of an Origin 2000 sgi render farm, an upgraded network with a central picture server, as well as three additional animation workstations. Williamson is also looking to compositing solutions to augment the studio’s Flint and Inferno suites and plans to explore realtime and interactive animation techniques.

Roughly five new production staff will be hired by the end of the month for a total of 25 on the animation team and Calibre’s business affairs team is being restructured to access Atlantis expertise. MacMillan and Atlantis Films president Seaton McLean will sit on Calibre’s board of directors.

It’s still full steam ahead for Calibre’s non-Atlantis service work, stresses Williamson, who is also looking to build on the company’s strong base in Canadian and international effects work.