R ed Arrow Studios, the content production and distribution arm of ProSiebenSat.1 Group, is selling its 62.5% stake in U.S. film distributor Gravitas Ventures to Toronto-based media company Anthem Sports & Entertainment, for $91.73 million and stock considerations.

Gravitas, which distributes independent narrative films and documentaries to international digital platforms, has been part of Red Arrow Studios since November 2017. In 2020, the company generated revenues of$74.19 million and an adjusted EBIT of around $10 million.

The company said that the decision to sell its controlling stake in the U.S.-based distributor “reflects the strategic direction of the ProSiebenSat.1 Group’s Entertainment segment, which is clearly focused on the region of Germany, Austria and Switzerland as its core market.”

“We are consistently pursuing our strategy and placing our focus on local programs. Accordingly, we are clearly aligning our content, channels and entertainment platforms towards synergies and the German-speaking region,” said Henrik Pabst, a member of the Red Arrow Studios advisory board and chief content officer of Seven.One Entertainment Group, the entertainment arm of ProSiebenSat.1 Group, in a statement.

“A global independent film distributor like Gravitas thus has its ideal home rather in a company such as Anthem Sports & Entertainment. We are convinced that Gravitas will add very well to Anthem Sports & Entertainment’s growth plans with its strong content and excellent customer relationships and will continue to develop there. We sincerely thank Gravitas for our years together and wish them all the best in their future journey.”

Added Nolan Gallagher, founder and CEO of Gravitas Ventures: “In collaboration with Red Arrow we have been able to expand the size, scope and financial results for our films and documentaries. We look forward to continuing to entertain global audiences as we embark on our new chapter with Anthem.”

Leonard Asper, Anthem’s CEO and founder, said: “It has been a pleasure working with the Red Arrow team to make this acquisition possible. Gravitas Ventures is deeply established as a global leader in film and distribution, consistently producing top-quality content that appeals to a broad and diverse audience. Their library will be a vital asset for Anthem’s top properties, many of which are dedicated to delivering a quality cinematic experience to viewers at home or on the go.

“The expertise of the Gravitas Ventures team will be invaluable as Anthem moves into the digital distribution realm, and we look forward to working with them to expand our collective reach even further with specially developed FAST digital channels that will fully utilize the power of their incredible catalogue.”

This story originally appeared in Realscreen, photo from The Subject