Creative Realities agrees to acquire Cineplex subsidiary for C$70M

Creative Realities (CREX) announced that it has entered into a share purchase agreement to acquire Cineplex Digital Media, an indirect wholly-owned subsidiary of Cineplex, for C$70M in cash, subject to customary post-closing adjustments. CDM offers data-driven, experienced-based digital marketing solutions across five industry verticals in North America: Quick Service Restaurants; Financial Services; Retail; Malls and Real Estate; and Lotto. The firm posted sales of just under C$56M in 2024 and is on track to deliver 25% growth in 2025, operating in over 6,000 locations and 30,000 end points – with such well-known brands Scotiabank, RBC, AMC Theatres, Tim Horton’s and most recently was announced as the exclusive partner for the planned North Carolina Education Lottery retail deployment. Over 60% of revenue is recurring in nature and approximately 84% of the organization’s 2024 sales were in Canada, with the rest in the U.S. The acquisition, expected to close in October, is anticipated to provide cost synergies of at least $10 million, across North America, on an annualized basis by the end of 2026 – reflecting operating efficiencies, margin enhancement opportunities, and application of the company’s CMS and AdTech platforms.