Creative Realities Closes Acquisition of Cineplex Digital Media

Acquisition Details - Creative Realities, Inc. has completed the acquisition of Cineplex Digital Media for CAD $70 million in cash, which includes Canada's largest mall retail media network with over 750 screens across 95 shopping destinations [1] - Cineplex Digital Media reported sales of just under CAD $56 million in 2024 and is projected to achieve 25% year-over-year growth in 2025 [1] - The acquisition is expected to generate cost synergies of at least USD $10 million annually by the end of 2026, enhancing operating efficiencies and margin opportunities [1] Financial Structure - The acquisition was financed through a combination of debt and preferred equity, including a three-year, $36 million senior term loan and $30 million of convertible preferred equity [3] - The purchase price is estimated to be approximately 3X-4X the Adjusted EBITDA of the CDM business for the trailing 12-month period ended September 30, 2025 [1] Board Expansion - The size of the Board of Directors has increased from four to seven, with the appointment of three new directors: Dan McGrath, Tom Ellis, and Mike Bosco [2] - The new board members bring unique capabilities and expertise to support the company's expansion plans [3] Company Overview - Creative Realities designs and deploys digital signage-based experiences for enterprise-level networks, utilizing platforms such as Clarity™, ReflectView™, and iShowroom™ [5] - The company provides recurring SaaS and support services across various vertical markets, including retail, automotive, and digital-out-of-home advertising [6]