Netflix may have just laid off 500 employees to cut cost, but they also just bought an animation studio. Animal Logic, the studio behind films like Happy Feet, Legend of the Guardians: The Owls of Ga’Hoole, The Lego Movies and Peter Rabbit is part of Netflix’s long-term plan to compete against Disney when it comes to family animation.

Netflix has already had some good films when it comes to animation, including Over the Moon, Academy Award-nominated Klaus and the recently released The Sea Beast.

According to Deadline, Animal Logic launched over 30 years ago in Sydney, Australia before setting up a second studio in Vancouver in 2015. They’ve previously partnered with the streamer on films like The Magician’s Elephant, directed by Wendy Rogers, and are working on The Shrinking of the Treehorns, directed by Ron Howard.

Here’s what Amy Reinhard, Netflix Vice President of Studio Operations had to say about the acquisition:

“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.”