In the largest digital-cinema deal to date in Spain, Arts Alliance Media (AAM) and Yelmo Cines reached an agreement to digitize Yelmo’s chain of 31 cinemas. The arrangement includes all the financing to procure the equipment, allowing the rollout to begin immediately.

Yelmo, Spain’s leading local exhibitor, will install digital systems in 370 screens under the deal. In phase one of the rollout, at least half of Yelmo’s screens at each location will be converted to digital, with the remainder to be installed over the following months. AAM recently announced the opening of an office in Barcelona to represent AAM’s business in the Spanish and Portuguese markets.

The installation and maintenance will be carried out by AAM in conjunction with local Spanish integrator Grupo Kelonik. All screens will be 3D-capable and will receive AAM’s Theatre Management System software and library management server. Sites will also be equipped with satellite receivers in cooperation with AAM’s partner Arqiva for the receipt of digital prints and live events.

The rollout will be achieved with financing provided by AAM through a 50 million euro investment from funds advised by Sankaty Advisors, LLC, the credit affiliate of Bain Capital, LLC. The deployment with Yelmo is AAM’s seventh announced territory following deals in the U.K. (Cineworld and Reel), France (CGR), Italy (The Space), Holland (ABC), Denmark (Denmark Digital) and in Norway via its JV Nordic Digital Alliance.

Fernando Evole, CEO of Yelmo Cines, said, “The results we have had from digital cinema over the last two years, particularly in terms of bringing 3D to customers and also in the opportunities brought to us from alternative content, have convinced us to digitize our entire circuit. Our experience with Arts Alliance Media has also proven to us that they are the right long-term partner.”

Spain currently has around 300 digital screens, approximately 80% of which are 3D-ready.