Game on for Cinram
EmptyTORONTO -- Canadian CD and DVD manufacturer Cinram International Income Fund diversified into the video game world Monday by paying $50 million for U.S. interactive software company Ditan Corp.
Toronto-based Cinram, which makes prerecorded media products for Hollywood studios and other entertainment customers, said it will pay Sayreville, N.J.-based Ditan an "additional cash consideration" beyond $50 million once certain performance targets are met.
"Ditan's strong relationship with the interactive software industry and well-established footprint will provide Cinram with a point of entry into a new industry that is directly adjacent and complimentary to ours," Cinram CEO Dave Rubenstein said in a statement.
Privately held Ditan makes and distributes direct-to-store video games for video-game publishers, retailers and home video studios.
"They have a large stable of renowned video games customers and retailers with medium- to long-term contracts that will be accretive to Cinram," Rubenstein said in explaining the deal.
Ditan, which has 180 employees, operates facilities in Atlanta; Indianapolis; Louisville, Ky.; and Seattle.