Carmike Cinemas to acquire Digiplex locations
Carmike Cinemas is acquiring four-year-old Digital Cinema Destinations Corp., which operates theatres under the Digiplex brand.
The agreement is a stock-for-stock transaction in which Carmike will acquire 100% of Digiplex’s 7.93 million shares outstanding. Each Digiplex share will be exchanged for 0.1775 shares (subject to certain potential reductions) of Carmike common stock. Digiplex currently operates in 21 locations with 206 screens, and has agreements to acquire another five theatres with 53 screens.
Since its founding in 2010 by Bud Mayo, Digiplex has been transforming its movie theatres into interactive digital entertainment centers. Digiplex has been a pioneer in alternative programming and has a 50% interest in the DigiNext distribution platform. The transaction is expected to close during the third quarter of 2014 and will increase Carmike’s footprint to 280 theatres and 2,936 screens in 41 states.
Carmike president and CEO David Passman stated, “Carmike strives to be an innovator in the exhibition industry, and we believe the addition of the Digiplex circuit will further enhance those efforts… The circuit is a very complementary fit to Carmike and the acquisition enables us to add four new states: Arizona, Connecticut, Maryland and New Hampshire, to our expanding geographic footprint.”
Digiplex chairman, CEO and founder Bud Mayo commented, “We view this transaction as a complementary win-win for both organizations. Digiplex holders will benefit by receiving stock in one of the industry-leading exhibitors. David Passman, his fellow senior executives and their customer-centric, theatre-level teams have together orchestrated a fantastic, multi-year turnaround—both operationally and financially.”
All of the acquired theatres in Digiplex’s current circuit feature digital projection systems. Over 35% of the screens are 3D-capable.