NCM Unveils Ambitious Expansion Plans with Acquisition of Captivate
In a major move to solidify its position in the premium video and digital out-of-home advertising space, NCM has announced its definitive agreement to acquire Captivate, the leading operator of digital video elevator and lobby advertising in North America. This strategic acquisition marks an important milestone in NCM's evolution and represents the next step in its strategy to build a market-defining specialty advertising platform.
With over 26,000 digital video screens across more than 11,000 buildings in the U.S. and Canada, Captivate brings a highly sought-after affluent professional audience into the fold, complementing NCM's existing young, diverse moviegoing audience. The combined platform will provide a powerful force-multiplying solution for high-attention advertising delivery, allowing marketers to reach consumers and business decision-makers where they work, live, and play throughout the entire week.
"This acquisition marks an important milestone in NCM's evolution," said Tom Lesinski, CEO of NCM. "Captivate complements and expands our core expertise in providing hard-to-reach video-enabled audiences, and this acquisition builds on the capabilities, customer relationships, and expertise we've developed over more than two decades."
With Captivate on board, NCM's expanded network will reach an impressive 48,000 digital screens across theaters, office buildings, and residential properties in 185 Designated Market Areas, including all of the top 100 markets. This increased scale and scope are expected to enhance advertiser relationships, strengthen the company's technology platform, and create new avenues for long-term growth.
The acquisition also brings a recurring subscription revenue component through Captivate's multiyear building agreements and high retention rates, with the company boasting an impressive 96% building retention. This adds a stable and predictable revenue stream to NCM's existing business model.
NCM's Chairman, Chan Park, highlighted the strategic fit of this acquisition, stating that it builds directly on the strategy they've been executing over the past several years. Once closed, the transaction will expand national, local, and programmatic inventory and audience reach, deepen advertiser relationships, strengthen their technology platform, and create new avenues for long-term growth.
Tom Lesinski also emphasized the unique value proposition that this acquisition brings to advertisers. "The ability to retarget audiences from buildings to theaters in key DMAs will create a dynamic advertising solution that does not exist today," he noted.
Captivate's impressive financial performance over the past two years has seen revenue growth of 40% and Adjusted EBITDA more than 50%, reflecting low capital intensity, high incremental margins, and strong cash generation. This acquisition represents an important step in NCM's journey to become a leading premium video and digital out-of-home advertising platform.
