Creative Realities Closes Acquisition of Cineplex Digital Media

Executive Summary

• Creative Realities, Inc. completed its acquisition of Cineplex Digital Media (CDM) for CAD $70 million cash.
• The deal adds Canada’s largest mall retail media network (≈750 DOOH screens across 95 locations) and is expected to generate at least USD $10 million of annual cost synergies by the end of 2026.
• Financing was provided via a $36 million senior term loan and $30 million convertible preferred equity; three new directors were added, expanding the board from four to seven members.

Key Details

• Purchase Price: CAD $70 million cash.
• Target Business: CDM’s 750‑screen DOOH network covering 95 shopping destinations; 2024 sales ≈ CAD $56 million with projected 25% YoY growth in 2025.
• Synergy Estimate: Minimum USD $10 million annual cost synergies across North America, expected by end‑2026 (operating efficiencies, margin enhancement, CMS/AdTech integration).
• Valuation Metric: Purchase price ≈ 3–4× Adjusted EBITDA for the trailing twelve months ended Sep 30 2025.
• Financing Structure:
• $36 million senior term loan, three‑year maturity, lender: First Merchants Bank.
• $30 million convertible preferred equity at a $3.00 conversion price, issued to affiliates of North Run Capital LP.
• Craig‑Hallum acted as exclusive placement agent for the financing.
• Board Expansion: Board increased from four to seven members; new directors: Dan McGrath (COO of CDM’s prior parent), Tom Ellis, and Mike Bosco (both from North Run Capital LP).
• Strategic Rationale: Doubling company size, expanding customer base, adding technology offerings, and leveraging CDM’s media network for higher shareholder returns.

Notable Quotes

“This is truly a significant day for Creative Realities, as we more than double the size of the Company, accelerate our growth trajectory, and set the stage for increased shareholder returns in the years ahead,” – Rick Mills, Chairman & CEO.