Rights company Entara and kids' and factual programme maker Parthenon Entertainment are teaming up, following a deal backed by private investment and business management group Arkaga Fund.
The aim of the two newly combined firms will be to develop a leading force in the family entertainment industry. The two will provide a combined offering of programme production and distribution, as well as licensing.
The programme libraries of both firms will be represented worldwide by Parthenon.
Carl Hall, founder and MD of Parthenon will become CEO of the new group. David Cardwell, chairman of Entara, will also become chairman of Parthenon, while Theresa Plummer-Andrews will remain as non-executive director of Entara and will take on the same position for Parthenon.
Regis Brown, former executive VP at Entara, will join Parthenon as president of Parthenon Kids and will oversee all of the firm's children's properties as well as those previously handled by Entara. Brown will also retain a seat on the board of Entara.
Pathenon's existing senior management will remain in place.
Hall is planning to expand the business even further into factual entertainment and children's entertainment.
Cardwell stated: "Entara and Parthenon complement one another perfectly and together with the support of Arkaga Fund, we are confident that this deal will prove to be a huge success. Our aim is to create a leading business within the family entertainment industry and this agreement has set us on a path to achieving just that."
Hall added: "I created Parthenon five years ago and have presided over the company's rapid organic growth. I am really proud of the team I have built, the partnerships created and the market share the company has achieved.
"However, it is clear to me that if we want to achieve our ambitions and take the company to the next stage we needed outside investment.
"With the backing of Arkaga Fund, Parthenon now has the resources to rapidly grow both the factual and children's IP businesses, both organically and by strategic acquisitions. I am really excited to be at the helm of this exciting new venture."