Tube Images will acquire Behaviour’s digital studio

3-D special effects co. gets New Media arm for $587,000

MONTREAL — Behaviour Communications and Tube Images announced Tuesday that they have inked a deal whereby Montreal-based Tube will acquire Behaviour’s digital studio, also based in Montreal. Tube, a company specializing in 3-D special effects, is paying cash-strapped Behaviour C$850,000 ($587,000) for Behaviour New Media, which operates the studio.

Last summer, Behaviour had announced a deal to sell the studio to Ice Storm Digital, but the two companies announced last month that the agreement was being terminated. No reason was given. The new deal is set to close no later than March 6.

Disappointing results

The digital studio is the latest piece of Behaviour Communications to be sold off. Behaviour, which has posted consistently poor financial results for the past couple of years, has shed most of its divisions, including its Canuck distribution operation, which was sold last year to Industry Entertainment (and was re-born as Seville Pictures).

With the sale of Behaviour New Media, Behaviour’s remaining key asset is Los Angeles-based Behaviour Worldwide.

Losses expected

In a related development, Behaviour announced that it expects a significant net loss from discontinued and continuing operations for the year ended Sept. 30, 1999, including losses for the fourth quarter.

The acquisition of Behaviour New Media is a key part of Tube’s plan to grow its f/x business and expand its animation and TV production, say execs at Tube.

“The acquisition of the studio allows Tube’s growth to accelerate,” said Tube veepee Dominique St. Louis, who will be interim head of the new studio. “Now we will be able to better respond to the growing demands for 3-D animation and visual effects from the international film, television and advertising market.”

Within three months, Tube will re-locate both facilities into one location. Tube is in pre-production on three animated TV series, including “Nunavut” for CBC and Tele-Quebec, and “Albert and Atom” with seasoned Canuck animator Gerald Potterton.

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