Cineplex Inc. announced today that it has entered into a definitive agreement with OpenGate Capital to sell Player One Amusement Group (P1AG), the Company’s amusement solutions division.
OpenGate will acquire all of the issued and outstanding common shares of P1AG for a total purchase price of $155 million in cash, subject to customary post-closing adjustments. The transaction unlocks tremendous value for Cineplex and its stakeholders, while providing immediate liquidity for repayment of net proceeds against the Company’s credit facility. The transaction is expected to close in the first quarter of 2024 and is subject to regulatory approvals and other customary closing conditions. As part of the Transaction, P1AG has entered into a long-term agreement to continue to supply and service amusement games in Cineplex’s theatres and location-based entertainment venues.
“We proudly built the P1AG business, through several acquisitions and organic growth, to become a North American leader in amusement gaming solutions which has delivered strong, consistent results, especially coming out of the pandemic. As we continue to focus on our growth plan, the strategy to divest P1AG came at an opportune time to strengthen our balance sheet”, said Ellis Jacob, president and CEO, Cineplex. “We thank the talented employees of P1AG, and we look forward to working with them as a commercial partner and supplier to Cineplex going forward.”