Carmike Cinemas to Acquire Digiplex for $45 Million
Carmike Cinemas disclosed Thursday that it is paying $45 million in stock to acquire Digital Cinema Destinations, a 4-year-old chain of theaters operating under the name Digiplex.
The transaction calls on Carmike to trade 0.1775 shares of its stock for each share of Digiplex, which has 7.93 million shares outstanding. Carmike shares closed at $32.19 on Thursday, while Digiplex shares were at $4.95.
Digiplex operates 206 screens in 21 locations and has agreements to acquire an additional five theaters with 53 screens. The company also holds a 50 percent stake in DigiNext, a venture that plucks movies from film festivals and gives them screenings in mainstream theaters, oftentimes accompanied by Q&A sessions with the filmmakers.
Prior to the acquisition, Carmike has 253 theaters with 2,670 screens in 37 states, including 38 large-format auditoriums with luxury seating.
"Carmike strives to be an innovator in the exhibition industry, and we believe the addition of the Digiplex circuit will further enhance those efforts," said Carmike CEO David Passman.
Also on Thursday, Digiplex reported quarterly revenue of $10.1 million, up from $8.8 million a year earlier, and a net loss of $1.2 million, down from a net loss of $2.2 million.