LOUISVILLE, Ky., Nov. 26, 2018 — Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX, CREXW), a leading provider of digital marketing solutions, announced it has completed the acquisition of Allure Global Solutions, Inc. (“Allure”) from Christie Digital Systems, Inc. Based in Atlanta, Allure is an industry-leading provider of digital signage, digital menu boards, and digital signage analytics with a strong presence in the quick serve restaurant, entertainment, and theater verticals.
Allure offers a complete set of project solutions to clients operating thousands of digital signage installations nationally, including Long John Silver’s, AMC Theatres, Levy Restaurants and Coca-Cola. Its tenured management team develops leading analytical capabilities in content strategy, creation and optimization, and prioritizes ROI as a key part of its digital signage strategy—empirically demonstrating that its strategies can increase revenue at its customers’ point of sale. Allure brings to CRI a large pipeline of pilot projects with marquee brands, as well as significant international expansion opportunities in the theater and QSR channels.
“Allure will be a vital component of CRI’s growth strategy,” remarked Rick Mills, CRI’s Chief Executive Officer. “We are excited about the new sales verticals and analytics capabilities that Allure can now offer across our enterprise. Allure will benefit from CRI’s strong reputation for efficient implementation and management of complex technology solutions, as we transfer a number of Allure’s important back-end services, like project management and network operations, to CRI’s proven services platform. This will result in significant improvement in efficiency and reliability for clients, and profitability enhancement for CRI.”
Combining CRI’s 2018 revenue guidance of $25 million with Allure’s fiscal year ended March 31, 2018 revenue of $9.4 million results in 2018 estimated pro-forma revenue of $35 million. Adjusting for anticipated synergies, the transaction is expected to be EBITDA accretive in 2019.
CRI purchased the outstanding stock of Allure for total consideration of $8.5 million, or 0.9x fiscal year 2018 revenue, comprised of a combination of cash, seller note and assumption of certain liabilities. CRI would make an additional $2.0 million payment to the seller if the Allure’s customers actual twelve month revenue exceeds $13 million by December 31, 2020, an increase of 38% over fiscal year 2018 revenue.
About Creative Realities, Inc.
Creative Realities helps retailers and brands use the latest omnichannel technologies to inspire customer engagement within and across commercial environments. Founded over 15 years ago, the firm’s evolving client base has led to recognized leadership in design, development, deployment of human centric, behavior-based solutions. The firm has created and delivered consumer/shopper experiences and installations for high-end enterprise level networks and is actively providing recurring SaaS and support services for growth-driven verticals: Arenas & Stadiums, Automotive, Beauty, Multi-brand/Convenience, and Mass Merch Retail, Fashion /Althleisure, Foodservice/QSR, Financial Services, Wireless/Mobile.