Cineplex just announced that it has offered to purchase EK3 Technologies, a London, Ontario-based in-store digital merchandising provider, with operations in Canada, the United States and other countries.
Cineplex has offered approximately $40 million, plus a reverse earn-out payment subject to an aggregate maximum purchase price of $78 million for both payments. The reverse earn-out payment will be based on 2015 operating results and will be payable in early 2016 in the event certain targets are achieved.
Once the sale is completed Cineplex plans to rename Ek3 to Cineplex Digital Networks (“CDN”), and will continue to be led by EK3’s President and CEO, Nick Prigioniero.
Very smart move on Cineplex’s part will be able to further extend their message to a network that reached 1.8 billion shoppers annually.