National CineMedia has completed its $275 million acquisition of Captivate Holdings, combining its U.S. cinema advertising platform with Captivate’s office and residential digital video network.
The transaction closed September 18 following regulatory approval and other closing conditions.
The combined platform operates more than 48,000 digital screens across 185 Designated Market Areas, including all of the 100 largest U.S. markets.
National CineMedia’s cinema network consists of approximately 22,000 theater and lobby screens across more than 1,750 theaters.
Captivate adds more than 26,000 digital video screens across over 11,000 office and residential buildings in North America.
The combination expands National CineMedia beyond cinema and gives advertisers access to audiences across theaters, workplaces and residential properties through one platform.
NCM financed the acquisition using borrowings under a new $275 million senior secured first-lien term loan, cash on hand and a new $25 million senior secured revolving credit facility.
Approximately $10 million of the revolver was drawn at closing.
Crestline Direct Finance and Encina Commercial Finance provided the financing, with Crestline serving as administrative and collateral agent.
National CineMedia now plans to focus on integrating the networks and developing cross-platform advertising opportunities across the combined business.
KEY QUOTES:
“The acquisition of Captivate is a key step in advancing NCM’s strategy to build a broader premium video and digital out-of-home advertising platform.”
“The combined company creates the premium video and digital out-of-home advertising platform with more than 48,000 digital screens across theaters, office buildings, and residential properties in 185 Designated Market Areas, including all of the top 100.”
Tom Lesinski, CEO of National CineMedia
