Completion of the transaction would establish eOne as the largest independent film distributor in both the Canadian and U.K. markets.
Alliance Films is one of the top five independent filmed entertainment companies in the world and is a leading multinational distributor, co-financier and film producer.
Its member companies include Alliance Films and Alliance Vivafilm (Canada); Momentum Pictures (UK) and Aurum Producciones (Spain).
Entertainment One Ltd., listed on the London Stock Exchange (LSE:ETO), specializes in the acquisition, production and distribution of film and television content in Canada, the U.S. and several other countries.
Alliance Films has several films being showcased this week at the Toronto International Film Festival including opening night film, "Looper."
Other Alliance films at the festival include "Place Beyond the Pines," "Hyde Park on the Hudson," "Dredd," "Anna Karenina," "Seven Psychopaths" and others.
eOne has released 152 films this year including "The Twilight Saga: Breaking Dawn - Part 1," "We Need to Talk About Kevin" and "Tinker, Tailor, Soldier, Spy."
"The combination of Entertainment One and Alliance Films will create the leading global independent film distribution business," said eOne president and CEO Darren Throop.
"As a result of the acquisition, eOne will be a more competitive business in each of the geographic markets that we serve, allowing us to act as a more valuable partner for content producers."
Entertainment One is also a leading independent television production studio in Canada. It delivered 237 half hours of original television in various genres in its last fiscal year.
Completion of the acquisition is conditional on approval from the Canadian Competition Bureau.