Carmike Cinemas Reaches Deal to Buy Digiplex

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Courtesy of Carmike Cinemas

Carmike Cinemas has reached a deal to acquire Digital Cinema Destinations Corp., the theater chains said Thursday.

If the all-stock transaction goes through, Carmike’s footprint will expand to 280 theaters and 2,936 screens across 41 states. It will also give Carmike a presence for the first time in Arizona, Connecticut, Maryland and New Hampshire.

Known as “Digiplex,” Carmike’s new prize currently operates in 21 locations and has 206 screens. There is also an agreement to acquire another five theaters, representing 53 screens.

The deal is expected to close during the third quarter of 2014.

Under a definitive agreement approved by both companies’ boards of directors, Carmike will acquire 100 percent of Digiplex’s 7.93 million shares outstanding. Each Digiplex share will be exchanged for 0.1775 shares of Carmike common stock.

The deal could be worth in excess of $45 million, based on Thursday’s closing price. A representative from the chains pegged the value at $60 million.

Shares of Carmike closed down 0.43 percent to $32.19 on Thursday, while shares of Digital Cinema Destinations Corp. shot up more than 8 percent to $5.36 in after-hours trading.

Founded in 2010, over 35 percent of Digiplex’s screens are 3D capable and one theater has an IMAX auditorium.

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