Acquisition of Cineplex Digital Media
Creative Realities completed the acquisition of Cineplex Digital Media (CDM) for $70 million CAD, approximately $50 million USD. This acquisition is expected to double the company's size and significantly improve bottom-line results. CDM posted revenue of just under $56 million CAD in 2024 and is on track to deliver 25% year-over-year growth in 2025.
Expansion into Canadian Market
With the acquisition of CDM, Creative Realities has significantly increased its operations outside the US. Over 60% of CDM's revenue is recurring, and approximately 84% of sales are based in Canada. CDM operates in over 6,000 locations with signage deployments in approximately 30,000 endpoints.
New Business Developments
Creative Realities has been chosen by a large QSR chain with over 4,000 locations in the US for a digital drive-through expansion. The company is also working with a c-store customer on a retail media network test involving 8,000 in-store screens that could lead to significant SaaS revenue growth.
Financial Outlook Post-Acquisition
The acquisition is anticipated to provide synergies of at least $10 million annually by 2026. Creative Realities expects total company revenue to exceed $100 million in 2026, with an adjusted EBITDA margin in the high teens.