Cineplex Acquires EK3 Technologies Inc.
|Areas||Corporate and Commercial, Tax, Technology|
Goodmans represented Cineplex Inc. (TSX:CGX) in connection with its acquisition of EK3 Technologies Inc., a London, Ontario-based, market leading in-store digital merchandising provider, with operations in Canada, the United States and other countries. The company will be renamed and operate as Cineplex Digital Networks. Cineplex Digital Networks (formerly 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. EK3 specializes in SaaS-based solutions, deployment and technical services, strategic planning, content creation and media sales. With well over a decade of research and development experience, EK3 has deployed some of the world's largest and most complex digital networks using proprietary state-of-the-art technology and patented software. The company's clients include Tim Hortons, McDonalds, Walmart, Target, as well as Canadian financial institutions, RBC Financial Group and BMO Financial Group.
Cineplex Digital Media, Cineplex's existing digital signage business, serves clients including Scotiabank, CIBC, SunTrust, Rogers, Oxford Properties, Brookfield office towers and ONroute, among others. The purchase price included an initial payment of approximately $39.1 million, which was paid on closing, 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.