National CineMedia Acquires Captivate Holdings for $275 Million

National CineMedia agreed to acquire Captivate Holdings, a digital video advertising operator specializing in elevators and lobbies, from private equity firm Generation Partners for $275 million. The deal merges cinema advertising with a network of over 26,000 screens located in 11,000 office and residential buildings across the United States and Canada.

The combined platform will operate more than 48,000 screens across 185 designated market areas. The company intends to use the merger to expand its premium video and digital out-of-home advertising capabilities while improving data targeting and measurement. CEO Tom Lesinski described the acquisition as an important milestone in the company's evolution.

In a simultaneous financial update, the company reported second-quarter revenue of $58.4 million, a 13% increase. While net losses narrowed to $9.9 million, the company's stock price fell 16% in late trading to $3.20.