National CineMedia, Inc. (NASDAQ: NCMI) has announced a definitive agreement to acquire Captivate Holdings, LLC, a leading operator of digital video elevator and lobby advertising in North America, for $275 million.
This acquisition aims to merge NCM's cinema advertising leadership with Captivate's extensive office and residential presence, forming a premier video and digital out-of-home advertising platform with over 48,000 digital screens across theaters, office buildings, and residential properties in 185 Designated Market Areas.
The transaction is anticipated to conclude in the second half of 2026.
Post-acquisition, National CineMedia plans to focus its free cash flow on reducing debt, supported by the high gross margins and asset-light model of the combined entity.
Consequently, the company is suspending its dividend and share repurchase programs.
BofA Securities is acting as the exclusive financial advisor, while Hogan Lovells Cadwalader is providing legal counsel to National CineMedia.
“This acquisition marks an important milestone in NCM’s evolution and represents a key next step in our strategy to build a market-defining premium video and digital out-of-home advertising platform,” said Tom Lesinski, Chief Executive Officer of NCM. “Captivate is an excellent platform that strategically complements and expands our core expertise in connecting advertisers with highly sought-after audiences in premium, high-attention video-enabled environments."