Canadian entertainment and media company Cineplex has announced a definitive agreement with OpenGate Capital to sell Player One Amusement Group for $155 million.
Los Angeles-based private equity firm OpenGate will acquire all issued and outstanding common shares of Player One Amusement Group (P1AG), Cineplex’s amusement solutions division.
“Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market,” said Andrew Nikou, OpenGate’s founder and managing partner.
“As corporate carve-out specialists, we are ready to bring the full force of our operations team to support the business and management team in this next stage of growth.”
The transaction is expected to close in the first quarter of next year, subject to closing conditions. It includes a long-term agreement for Player One to continue to supply and service arcade games in Cineplex’s theatres and location-based entertainment venues across Canada.
“We proudly built the P1AG business, through several acquisitions and organic growth, to become a North American leader in amusement gaming solutions which has delivered strong, consistent results, especially coming out of the pandemic,” said Ellis Jacob, president and CEO of Cineplex.
Non-core asset sale to OpenGate Capital
“As we continue to focus on our growth plan, the strategy to divest P1AG came at an opportune time to strengthen our balance sheet.”
Cineplex has more than 170 movie theatres and location-based entertainment (LBE) venues. The company also operates The Rec Room, a Canadian chain of entertainment restaurants, as well as the Playdium arcades, and Cineplex Junxion.
Images courtesy of Cineplex
