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IMAX Corporation (Nasdaq: IMAX) $16.86 and Regal Entertainment Group (NYSE: RGC) $13.12. Today jointly announced an expansion of the companies' joint venture agreement to include installation of an additional 16 to 25 new IMAX(R) theatres in the United States. These theatres, which are part of an amendment to the parties' original 2008 joint venture agreement, are in addition to Regal's previously committed rollout of 39 IMAX joint venture theatres, 34 of which are in currently in operation. As part of the agreement, Regal also plans to upgrade eight of its existing film-based IMAX theatres with IMAX's digital projection technology.
The companies intend to open up the new joint venture theatres by the end of 2012 in U.S. markets including such cities as Albuquerque, NM, Eugene, OR, Charlottesville, VA and Atlanta, GA. Upon completion of the full Regal IMAX theatre rollout, Regal will operate up to 77 IMAX theatres.
What They Do: IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies.
What They Do: Regal Entertainment Group is the largest motion picture exhibitor in the United States.
EarthLink (Nasdaq: ELNK) $9.09, along with ITC DeltaCom (OTCBB: ITCD) jointly announced today a definitive merger agreement under which EarthLink will acquire ITC DeltaCom for $3.00 per share in cash. The transaction is valued at approximately $516 million, including assumption of $325 million in debt. The purchase price represents a multiple of approximately 4.7x Adjusted EBITDA (a non-GAAP measure, see definition in "Non-GAAP Information for EarthLink" below) for the twelve months ended June 30, 2010, including expected cost synergies and excluding one-time transaction costs.
The acquisition will enable EarthLink to create a leading IP infrastructure and solutions company by combining its existing ISP and IP-focused businesses with Deltacom's integrated communications business. Deltacom's 16,400 mile fiber optic infrastructure in the Southeast – over 75% of which is owned or controlled under Indefeasible Right of Use (IRU) agreements – includes a 14-state Synchronous Optical Network backbone with 35 metro fiber rings, 294 collocations and 20 voice and data switches. Deltacom currently serves over 32,000 small and mid-size businesses, multi-location enterprises, government agencies and wholesale customers in the southeast with services including Multi-Protocol Label Switching (MPLS) and IP-based products. Together, the companies will offer customers a comprehensive suite of Internet, telecommunications and managed services supported by an exceptional team of people focused on best-in-class customer care.
What They Do: Earthlink is a leading provider of IP services to consumers and businesses across the country
What They Do: ITC DeltaCom provides, through its operating subsidiaries, integrated telecommunications and technology services to businesses and other communications providers in the southeastern United States.
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