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.
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“Cinedigm is now a fully integrated distributor of independent films and specialty content,” said Chairman and CEO Chris McGurk.