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Indian animation and gaming content production company DQ Entertainment (DQE:AIM) has entered into a deal to secure a 20% stake in French firm Method Films. No financial details were disclosed but the acquisition meets DQE’s strategy of investing in co-production to obtain larger percentages of the global intellectual property and distribution rights in its productions.

Method Films is an animation concept and content creation company, producing content for international broadcasters, including Nickelodeon, BBC, ITV, France2, France3, and ABC Australia. The two companies have already co-produced various productions together, including television series Skyland, for which they won an award at the Best Animated FRAMES Awards in Asia in 2006.

Business relations between the two firms will be further strengthened through the deal and there will be strategic business synergy leading to exponential growth.

So far, joint global projects together produced and under production have generated E19.9 million direct benefits to DQE. Projects worth E10.9 million are also in the pipeline.

Chairman and chief executive Tapaas Chakravarti of DQE describes the acquisition as ‘the logical next step to reinforce our long and successful relationship and help create one of the strongest global animation partnerships.’

DQE joined the junior market towards the end of 2007, having raised £26.8 million to be used for investments in intellectual property partnerships and possible acquisitions and joint ventures. The shares were up 2p to 148.5p following the news.

Shares says: Still early days but the shares are ticking up nicely.