Cineplex seeks to grow its digital signage business through EK3 acquisition | iNFOnews | Thompson-Okanagan's News Source

Current Conditions

0.4°C

Cineplex seeks to grow its digital signage business through EK3 acquisition

July 17, 2013 - 6:31 AM

TORONTO - Cineplex Inc. (TSX:CGX) has made a conditional offer to buy EK3 Technologies Inc., a private company based in London, Ont., that provides in-store digital signage for major retailers and financial institutions.

Toronto-based Cineplex — best known as operator of Canada's largest chain of movie theatres — says EK3 will complement its own digital signage business, which has Scotiabank, CIBC, Rogers and other companies among its client base.

Cineplex says it would pay about $40 million up front plus the potential for performance-related payments that could push the total to $78 million.

The deal requires acceptance by holders of 97 per cent of EK3's shares and other conditions but Cineplex says it expects the transaction to close within four weeks.

EK3 clients include Tim Hortons, McDonalds, Walmart, Target, and the RBC and BMO financial groups.

Cineplex says the company will be renamed and operate as Cineplex Digital Networks, under the leadership of EK3 president and CEO, Nick Prigioniero.

News from © The Canadian Press, 2013
The Canadian Press

  • Popular vernon News
View Site in: Desktop | Mobile