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Slide #5. National CineMedia, Inc. — Screenvision
National CineMedia, Inc. (NASDAQ:NCMI)
National CineMedia, Inc. (NASDAQ:NCMI) (the Company) announced today that it has entered into a definitive merger agreement with Screenvision, for $375 million of cash and stock on a debt free, cash free basis. The Company is the managing member and owner of 45.8% of National CineMedia, LLC (NCM LLC), the operator of the largest in-theatre digital media network in North America. Following the merger, NCM, Inc. will evaluate whether to contribute the Screenvision assets to NCM LLC. Although it is under no obligation to do so, NCM, Inc. expects that it will contribute the Screenvision assets and debt incurred to finance the acquisition to NCM LLC in exchange for approximately 9.9 million NCM LLC membership units and that the combined operation will result in an estimated $30 million of annual operating cost synergies. The merger will create a higher quality and more competitive video advertising network that will cover nearly all 210 Designated Market Areas across all 50 states and deliver to approximately 3,900 theatres with over 34,000 screens, reaching over 1.1 billion annual patrons.
National CineMedia is a holding company. Through its subsidiaries, Co. is a cinema advertising network. Co. is engaged in the sale of advertising to national, regional and local businesses in Noovie, its cinema advertising and entertainment pre-show seen on movie screens across the U.S., as well as on its subsidiary, National CineMedia, LLC's Lobby Entertainment Network, a series of screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies. Co. sells digital online and mobile advertising through its Cinema Accelerator product and across its suite of Noovie digital properties in order to reach entertainment audiences beyond the theater.
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Hold (2.33 out of 4)