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Netflix is acquiring Australia-headquartered animation and vfx studio Animal Logic.

Why did Netflix do this? According to a Netflix release, the acquisition “will support Netflix’s ambitious animated film slate.” It’s no secret that Netflix is in need of bulking up its animation slate, as powerful competitors continue to encroach into markets where the company has long been the top streamer. Certainly, purchasing a top-tier cg studio could be a means to that end.

Animal Logic details: Animal Logic is one of the industry’s leading independent animation studios. Based out of Sydney, Australia, the company also has offices in California and recently announced it is building a new 110,000 square feet studio to expand its Vancouver operations, where it will make 300 new hires over the next two years. Recent Animal Logic productions include The Lego Movie franchise films, The Matrix Resurrections, Happy Feet, and DC League of Super-Pets, which hits theaters next week.

What history is there between the companies? Animal Logic is already producing a pair of titles for Netflix including The Magician’s Elephant from Wendy Rogers and Ron Howard’s animated feature debut The Shrinking of Treehorn.

How else is Netflix growing its animation slate? In May, Netflix signed a multiyear services renewal with Oscar-winning vfx and animation company DNEG which will see the streamer spend at least $350 million with the company through 2025. In-house, there is still a bit of a grey cloud hanging over Netflix Animation after the company announced that it was eliminating 70 positions at its L.A. animation studio in May. Although the streamer did tell us that none of those affected were full-time Netflix employees. And, of course, the list of Netflix original animated titles which have been dropped or cancelled over the past year is well documented.

What are the conditions of the Animal Logic acquisition? No purchase price has been revealed by either company, but Netflix did say it was funding the acquisition with cash the company has on hand. The deal is still subject to regulatory approvals and other customary closing conditions, but the companies are confident the transaction will be finalized later this year. Once the acquisition is finalized, Animal Logic’s teams and leadership will remain operating under the Animal Logic brand and will fulfill production of existing and ongoing commitments and continue to collaborate and work with longstanding studio partners.

What Netflix is saying: Netflix VP of studio operations Amy Reinhard said: “Netflix has been investing in animation over the past few years and this furthers our commitment to building a world-class animation studio. Animal Logic is a leading animation studio with innovative technology that will strengthen our existing business and increase our long-term capacity in the animation space, so that we can better entertain our members around the world.”

What Animal Logic is saying: CEO and co-founder Zareh Nalbandian said: “After 30 years of producing great work with great people, this is the perfect next chapter for Animal Logic. Our values and aspirations could not be more aligned with Netflix, in working with diverse content makers, producing innovative and engaging stories for audiences around the world. Our collective experience and talent will open new doors for all our teams and will empower a new level of creativity in animation.”

COO Sharon Taylor added: “The strength of our partnership across a number of projects is testament to our shared creative vision. Solidifying our future together felt like a mutually beneficial, natural progression and I am so excited to continue to build on our success together.”

Pictured at top: “The Lego Movie”