Cinedigm Digital Cinema Corp. (Cinedigm), the global leader in digital cinema, announced today that it has sold the two components of its Managed Services Division, Core Technology Services Inc. (“Core”) and the Ezzi Net webhosting business to a company formed by a member of the management team of the division. This divestiture will allow Cinedigm to further focus on its digital cinema-related businesses.
The purchaser paid Cinedigm $268 thousand in cash and will provide service credits of $1.15 million in services to Cinedigm in exchange for the stock in Core and for sole ownership of the Ezzi Net webhosting business. These businesses currently host Cinedigm’s websites, and provide networking and other information technology services to Cinedigm.
Gary S. Loffredo, Interim co-CEO and General Counsel, commented, “Cinedigm is seeking to simplify its business structure and streamline its assets in a way that suits our overall digital cinema and out-of-home entertainment strategy. The Managed Services Division and the businesses within it are no longer central to Cinedigm’s focus on digital cinema. Utilizing them for their services without the demands of ownership will serve both them and Cinedigm better.”
About Cinedigm:
Cinedigm is a leader in providing the services, experience, technology and content critical to transforming movie theaters into digital and networked entertainment centers. The Company partners with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country. Cinedigm’s digital cinema deployment organization, software, satellite and hard drive digital movie delivery network; pre-show in-theater advertising services; and marketing and distribution platform for alternative content such as CineLive® 3-D and 2-D sports and concerts, thematic programming and independent movies is a cornerstone of the digital cinema transformation. Cinedigm™ and Cinedigm Digital Cinema Corp.™ are trademarks of Cinedigm Digital Cinema Corp. www.cinedigm.com
