Cineplex has announced its offer to purchase EK3 Technologies, a digital merchandising provider in London with operations in Canada, the United States and other countries.
The initial offer is approximately $40 million, in addition to a reverse earn-out payment which could push the total purchase price up to $78 million.
EK3 will be renamed and operate as Cineplex Digital Networks (CDN) and will continue to be led by EK3 President and CEO, Nick Prigioniero.
EK3 designs, installs, manages and consults on some of the largest digital merchandising networks in North America, with networks viewed by more than 1.8 billion shoppers annually.
The company has developed proprietary state-of-the-art technology and patented software, and provides creative content production, media sales and extensive network operations services, which delivers digital merchandising networks that are scalable, reliable and secure.
EK3 clients include major retailers including Tim Hortons, McDonalds, Walmart, Target, RBC and BMO.
The acquisition complements Cineplex’s existing digital signage business, Cineplex Digital Media (CDM), whose clients include Scotiabank, CIBC, SunTrust, Rogers, Oxford Properties, Brookfield office towers and ONroute.
“Cineplex’s brand, resources and media sales along with EK3’s proprietary technology platform, network management, award-winning creative services and digital merchandising expertise is a powerful combination,” said Ellis Jacob, President and CEO, Cineplex Entertainment. “The strengths of CDM and CDN will make us a leader in the indoor digital signage industry and provides a platform for significant growth throughout North America.”