Canadian exhibition giant Cineplex has announced a deal to sell its digital signage business to U.S.-based Creative Realities Inc. for $70 million in cash.
The sale of Cineplex Digital Media, subject to closing conditions, will help the parent company strengthen its balance sheet by reducing debt and supporting general corporate purposes, Cineplex said on Thursday.
As part of the deal, Cineplex has a long-term agreement with Creative Realities to continue operating digital-out-of-home networks across Canada, including in shopping malls and for companies like Scotiabank, RBC, AMC Theatres and Tim Horton’s.
Related Stories
“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 opportunistic and strategic sale,” Ellis Jacob, president and CEO of Cineplex, said in a statement.
Creative Realities, led by CEO Rick Mills and based in Louisville, Kentucky, is a digital signage solutions and experiences company. The acquiring company expects to achieve cost synergies of at least $10 million across North America and on an annualized basis by the end of 2026.
“We are thrilled to begin a new era at CRI with the acquisition of CDM,” Mills said in his own statement. “Through this transaction, we will double the size of the company, significantly increase our operations outside the U.S., expand margins, and open new avenues for accelerating growth going forward.”
