Entertainment One Ltd. (LSE:ETO) entered into an agreement to acquire 49% stake in The Mark Gordon Company, Inc. (‘MGC’) from Mark Gordon for approximately $240 million on January 29, 2018. Under the terms, consideration involves issuance of approximately 10.8 million shares of Entertainment One Ltd. (‘eOne’) to Mark Gordon and payment of $160 million in cash. The consideration also involves additional payment in cash, after the completion of transaction, in respect of pro rata portion of certain pre-acquisition contingent receipts up to a maximum aggregate amount of $37.5 million. Post-acquisition, eOne’s ownership of the issued share capital of MGC will increase from 51% to 100%. The cash consideration in transaction will be financed partially by the proceeds of the placing of new common shares of eOne which is expected to raise up to $75 million. The remainder of the cash amount of the consideration is expected to be financed by a debt issuance. The total amount of the placing and debt issuance is expected to raise $175 million. As of February 5, 2018, a special meeting for the shareholders of Entertainment One will be held on February 27, 2018. For the financial year ending 2017, MGC had revenues of £119.9 million ($150.1 million), EBITDA amounted to £26.2 million ($32.8 million) and gross assets of £203 million ($254.2 million). Post-acquisition, Mark Gordon will join eOne as President and Chief Content Officer, Film, Television and Digital, and also bring his team to join eOne. The transaction is subject to approval of offer by acquirer shareholders. As of February 27, 2018, the transaction has been approved by the shareholders of Entertainment One and is expected to close on or around March 2, 2018. The acquisition is not conditional upon the completion of the placing or the debt issuance. All conditions to the acquisition have to be satisfied by March 31, 2018. The transaction is expected to be 2% earnings accretive in the first full year of ownership on a fully diluted basis, before the impact of targeted cost savings of $7 million to $10 million by financial year ended March 31, 2020.