Cineplex is selling its amusement division Player One Amusement Group (P1AG) for $155 million.

The Canadian exhibitor announced Wednesday (Nov. 22) that it has entered an agreement with L.A.-based investment firm OpenGate Capital to sell P1AG for $155 million in cash. P1AG is an amusement solutions company that supplies arcade games, and is the owner of the Playdium brand.

The transaction is subject to regulatory approval and closing conditions, and is expected to close in Q1 2024, according to a news release. Goodmans LLP is Cineplex’s legal advisor in the transaction, while Scotiabank and TD Securities are the financial advisors.

As part of the deal, P1AG will act as a third-party supplier to Cineplex theatres and its location-based entertainment venues, such as the Rec Room.

In a statement, Cineplex CEO Ellis Jacob said the option to divest P1AG “came at an opportune time to strengthen our balance sheet.”

P1AG generated $49 million in revenue for Cineplex in Q3 2023, out of a total $463.6 million in revenue for the company during the period.

“We proudly built the P1AG business, through several acquisitions and organic growth, to become a North American leader in amusement gaming solutions which has delivered strong, consistent results, especially coming out of the pandemic,” said Jacob. “We thank the talented employees of P1AG, and we look forward to working with them as a commercial partner and supplier to Cineplex going forward.”

Image courtesy of Cineplex