Canadian exhibitor Cineplex has announced a definitive agreement with OpenGate Capital to sell Player One Amusement Group for $155 million, as reported by The Hollywood Reporter. The agreement will see Los Angeles-based private equity firm OpenGate Capital acquire all issued and outstanding common shares of the amusement gaming provider.
OpenGate Capital’s founder and managing partner, Andrew Nikou, expressed his enthusiasm for the acquisition, stating, “Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market. 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 set to be finalized in the first quarter of 2024, pending closing conditions. As part of the deal, there is a long-term agreement for Player One to continue supplying service amusement games to Cineplex theaters and location-based entertainment venues across Canada.
Player One, based in Toronto, provides amusement services and games across North America. The business was initially launched by Cineplex as Cineplex Starburst in 2015, focusing on amusement and gaming equipment provision. The company was rebranded as Player One Amusement Group in 2016, solidifying its position in the industry.
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Commenting on the sale, Ellis Jacob, president and CEO of Cineplex, stated, “As we continue to focus on our growth plan, the strategy to divest P1AG came at an opportune time to strengthen our balance sheet.”
The sale of Player One Amusement Group represents a strategic move for Cineplex, allowing the company to focus on its core business while also facilitating the growth and development of Player One under the leadership of OpenGate Capital.
This acquisition marks OpenGate Capital’s entry into the amusement solutions market, positioning the firm to capitalize on the resilience and growth potential of this sector. With a focus on providing operational support to businesses, OpenGate Capital aims to leverage its expertise to drive Player One’s growth and expansion in the coming years.
For Cineplex, the sale of Player One Amusement Group represents a strategic realignment of its priorities, allowing the company to streamline its operations and strengthen its financial position. The long-term agreement for Player One to continue supplying service amusement games to Cineplex theaters and entertainment venues ensures a continued partnership between the two entities, maintaining the flow of quality entertainment offerings to customers.
As the transaction moves towards completion in the first quarter of 2024, both Cineplex and OpenGate Capital are expected to work closely to ensure a smooth transition for Player One Amusement Group. The acquisition represents a significant opportunity for Player One to further enhance its position in the amusement and gaming market, leveraging the resources and support of its new parent company.
Overall, the sale of Player One Amusement Group represents a significant milestone for both Cineplex and OpenGate Capital, setting the stage for continued growth and success in the amusement solutions market. With a focus on innovation and customer satisfaction, both companies are poised to capitalize on the opportunities presented by this strategic acquisition, paving the way for a bright future for Player One Amusement Group under the leadership of OpenGate Capital.
