The company announces it has reached an agreement to acquire the dcinex group, to create the European leader in digital technologies for the cinema industry.
With the acquisition of dcinex, YMAGIS is strengthening its positions in services in Europe by becoming:
· the European leader in the sale of cinema equipment to cinema exhibitors and its installation, with an estimated European market share of 20%;
· the largest European network for the delivery of digital content, with more than 3,200 connected cinemas in 15 countries in Europe;
· the largest network of cinemas in Europe benefitting from NOC (Network Operating Center) services and maintenance contracts, with almost 7,200 screens under contract in 21 countries in Europe.
The final signature and implementation of the operation should take place in the coming weeks.
The amount of the acquisition is valued at € 26.1 million and three largest YMAGIS’ shareholders, Ymagis Holdings, Odyssée Venture and OTC Asset Management have already decided to vote in favour of the resolution knowing that the transaction allow YMAGIS to position itself as a reference in each of its core businesses.
Formed in 2004 by EVS Broadcast Equipment and following the acquisition of FTT and Bewegte Bilder, XDC became dcinex in 2012, as one of the leading European specialists in financing solutions and digital equipment for the cinema industry. Like YMAGIS, dcinex is organised around two business divisions:
VPFmanagement (Virtual Print fee) and the provision of services to cinema exhibitors and producers/distributors (covering the sale and installation of digital equipment, maintenance and facilities management of projection equipment, post-production of content and delivery of DCP (Digital Cinema Package).
The tie-up between YMAGIS and dcinex will give YMAGIS key positions in each of its business divisions.
At the VPF division, dcinex’s assets will complement those of YMAGIS – 2,785 VPF screens spread across 6 countries – by significantly enhancing positions in the countries in which the company is already present and by adding strong positions in 7 new countries: UK, Poland, Czech Republic, Austria, Portugal, Ireland and Denmark. All in all, at 31 December 2013, the new group had almost 5,800 screens in 15 countries in Europe under VPF contracts.
With this acquisition, YMAGIS will own the largest network in Europe of cinemas operated under VPF contracts.
At the Services division, which represented 60% of dcinex’s revenue in 2013 (vs. 39% for YMAGIS in 2013), the combination of the two companies’ services activities will mean that YMAGIS’ pro forma 2013 revenue would be split as follows: 53% for the Services activity and 47% for the VPF activity.
Serge Plasch, CEO and Managing Director of dcinex, has decided to leave the group following completion of this transaction to take up a new challenge within the PRG group, the world leader in event technology. As a result, Jean Mizrahi, current Chairman of YMAGIS, will become the Managing Director of dcinex once the operation is finalised.
Commenting on this deal, Jean Mizrahi, Chairman of YMAGIS, said: “We are very pleased to announce our association with dcinex. This highly strategic operation for YMAGIS enables us to substantially increase in size and create the European leader in the supply of digital services and equipment for the cinema industry, just one year after our IPO. The many complementary attributes contributed by each of the two companies will result in a new stronger group, benefiting from key positions in each of its business lines and now spanning more than 20 countries in Europe.”
“The tie-up with YMAGIS will enable dcinex to boost its European footprint in terms of services provided to cinema exhibitors as well as delivery of digital content. Drawing on highly complementary profiles, the new group’s management will be a key asset in positioning the Group as the leader in its industry,” added Serge Plasch, CEO and Managing Director of dcinex.
Following the creation of a joint venture with SmartJog (TdF group), SmartJog Ymagis Logistics, and the purchase of Arqiva’s network of connected cinemas to create the world’s largest network for the digital delivery of cinema content, YMAGIS’ acquisition of dcinex will truly create the European leader in the provision of digital services and equipment to the cinema industry.
A detailed presentation is available on the website of the company Ymagis: www.ymagis.fr
