Cineplex hopes to acquire digital signage company
Canadian-based entertainment company Cineplex Inc. announced this week that it has made an offer to acquire EK3 Technologies, a digital signage business. According to the release, the initial purchase price for the technology acquisition is $40 million.
Cineplex already has a digital signage business, but officials explained that EK3 will help the company improve the products and services it can offer to clients.
"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," Cineplex president and CEO Ellis Jacob said in the press release. "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."
Gord Nelson, Cineplex' chief financial officer, told the Globe and Mail that the industry is becoming stronger and Cineplex Digital Solutions and EK3 have been improving their infrastructures to handle the growing market. The possible acquisition is a good way for both companies to take advantage of revenue opportunities, he said.
EK3 specializes in digital merchandising networks, according to the press release. Specifically, the organization designs, installs, manages and consults on projects with companies including, but not limited to, Tim Hortons, McDonalds, Walmart and Target.
The Globe and Mail reported that Cineplex announced last month that it will also acquire 26 movie theaters from Empire Company Ltd. for $200 million. That move will improve its national coverage, expanding its presence into Atlantic Canada and Ontario.
When technology mergers and acquisitions are able to help all involved companies grow and offer better products to customers, it will bode well for both short- and long-term success.