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In page USAnimation:

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In late-1997, the company changed its name to VirtualMagic Animation and moved into a new production space in the San Fernando Valley. In order to economically compete in the animated episodic series and motion picture market, VirtualMagic Animation evaluated potential affiliate foreign animation companies with digital capabilities as well as joint venture possibilities. In 1999, VirtualMagic Animation and ImagineAsia Studio formed VirtualMagic Asia, a digital ink, paint and compositing service based in Manila, Philippines. VirtualMagic Animation and VirtualMagic Asia closed in 2003.