National CineMedia announced a definitive agreement to acquire Captivate, the leading operator of digital video elevator and lobby advertising in North America, for an enterprise value of $275 million. Captivate operates over 26,000 digital video screens in more than 11,000 buildings across more than 170 designated market areas in the United States and Canada, and the combined company will have more than 48,000 digital screens across theaters, office buildings, and residential properties in 185 designated market areas. The transaction will be financed through $275 million of new committed term debt, and the company expects net leverage at close to be approximately 3.9x. Accordingly, we are pausing our dividend and share repurchase programs. NCM also reported second quarter total revenue of $58.4 million, up 12.7% year-over-year, and adjusted OIBDA of $2.1 million, up 3x year-over-year.
National CineMedia IncAcquiring Captivate expands digital screens and revenue, though pause of dividend and buybacks may offset.
Being acquired at $275 million enterprise value provides a premium for shareholders.
