Toronto and U.K.-based Entertainment One has acquired a 51% stake in L.A.’s The Mark Gordon Company (MGC), in a $132.6 million deal that will see the two companies create a new studio venture.

The new indie studio will finance and produce network, cable, film and digital “premium” content, distributed internationally by eOne.

The deal, comprised of US$127.5 million in cash with the balance made up in eOne shares, also includes the rights owned by MGC to its existing television and film library, along with current and future productions. The agreement also includes the opportunity for eOne to acquire the remaining 49% of MGC following a seven-year term.

The studio will be based in L.A., with Mark Gordon helming the venture as CEO. It will continue to produce MGC content, and will also finance projects from other producers.

The Mark Gordon Company’s current production slate includes ABC’s Grey’s Anatomy, CBS’s Criminal Minds and USA Network’s Benched. Upcoming projects on the company’s film side include the yet-to-be-titled Steve Jobs biopic from writer Aaron Sorkin with Danny Boyle attached to direct, and Arms and The Dudes, to be directed by Todd Phillips and starring Jonah Hill.

MGC will complete its current contract with ABC Studios. eOne will also continue to operate its U.S. television business separately from The Mark Gordon Company.