Peace Arch Entertainment Group has entered into a letter of intent to acquire ContentFilm.

The letter of intent is non-binding and subject to various conditions and due diligence.

The deal is worth 19,500,000 Peace Arch shares plus cash of $35m. The total deal value based on a pure cash offer, is $50m (£34.8m) for the shares already in issue and $91.1m (£45.8m) on a fully diluted basis.

Peace Arch, based in Toronto, Los Angeles, New York and Vancouver, has three operating divisions: film, television and home entertainment.

ContentFilm has film sales/finance arm ContentFilm International, primarily TV sales division Fireworks International, and US DVD arm Allumination FilmWorks.

Peace Arch is listed on the Toronto stock exchange and Content on London's AIM.