Canadian exhibitor and entertainment company Cineplex announced it has entered into a definitive agreement to sell its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. (CRI), a U.S.-based digital signage solutions and experiences company.
CRI will acquire all the issued and outstanding common shares of CDM for a total purchase price of $70 million in cash, subject to customary post-closing adjustments. The strength of the offer, followed by a thorough diligence process, positioned Cineplex to capitalize on a timely opportunity to divest and unlock meaningful value. The proceeds of the sale will immediately strengthen Cineplex’s balance sheet and provide capital for opportunistic share buybacks, debt reduction and bolster resources for general corporate purposes subject to certain restrictions under its current debt agreements. The transaction is expected to close in the coming weeks and is subject to regulatory approvals and other customary closing conditions.
As part of the Transaction, Cineplex has entered into a long-term agreement to continue as CDM’s exclusive advertising sales agent for CDM operated digital-out-of-home networks across Canada.
“Over the past 16 years, Cineplex Digital Media has grown to be an industry leading and award-winning digital solutions company, operating some of the largest digital networks across North America. As we continued to grow CDM, we had said we would remain open to an oppo
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