Deal worth as much as $20 million
Cinedigm Digital Cinema has agreed to acquire distributor New Video Group for as much as $20 million to create what’s touted as full service digital releasing studio for independent films and specialty content.Cinedigm’s deal calls for $14 million in upfront consideration, plus an additional $6 million over three years tied to the future financial results. The upfront consideration will be paid with $10 million cash and $4 million of stock with acquisition is expected to close Friday. Cinedigm has also announced an underwritten public equity offering of common stock with B. Riley & Co. acting as sole book-running manager and Merriman Capital acting as co-manager of the offering. Cinedigm and New Video formed a distribution partnership in January and has acquired “The Invisible War” and “Citadel” for release in June and September. The companies also announced acquisition of “In Our Nature” on Thursday. “Cinedigm is now a fully integrated distributor of independent films and specialty content,” said Chairman and CEO Chris McGurk.