LOS ANGELES -- In the midst of its biggest ticket-selling summer in company history, Fandango announced today it has entered into an agreement to acquire the business of Quantum Loyalty Solutions, Inc., the leading provider of movie ticket-related promotions and owner of Hollywood Movie Money, a trusted and widely recognized movie currency that is accepted at more than 36,000 screens nationwide. The acquisition of Quantum will accelerate Fandango's promotional movie ticket and gift card business, dramatically increasing the company's broad array of product offerings and marketing solutions for studios, exhibitors, advertisers, and promotional sponsors worldwide. The acquisition is subject to customary closing conditions and is expected to close in the third quarter of this year.
For nearly three decades, Quantum has connected top brands with blockbuster movies through creative Hollywood Movie Money promotions and customer loyalty programs, centered on the moviegoing experience. Recent campaigns have supported some of the year's biggest films including "Iron Man 3," "Despicable Me 2," "Man of Steel," "Monsters University," "Fast and Furious 6," "Star Trek into Darkness," "The Heat" and others.
"The marriage of Quantum's promotions business and Fandango's ticketing platform will offer unprecedented new opportunities for studios, exhibitors and brands to engage with millions of moviegoers," said Paul Yanover, President of Fandango. "We look forward to working with the Quantum team to build on Hollywood Movie Money's momentum and help drive even more movie fans into theaters."
The union will make Hollywood Movie Money currency more convenient for consumers, as many rewards will now be redeemable through Fandango's website and mobile apps, visited by more than 41 million moviegoers each month. For the first time, consumers redeeming Hollywood Movie Money rewards will also be able to purchase additional movie tickets for their friends or family who are accompanying them to the theater.
Fandango provides online and mobile ticketing to more than 21,000 screens nationwide, more than 75% of U.S. theaters with advance ticketing capabilities. With the addition of Quantum, Fandango will have an unparalleled movie ticket promotion capability reaching over 95% of U.S. theaters, as well as many theaters in major international markets.
The acquisition follows Fandango's recent announcement that it signed its fifth new exhibitor this year, Pacific Theatres, expanding its Southern California footprint to cover 80% of theaters with advance ticketing capabilities. The other new exhibitor agreements include Muvico, Studio Movie Grill, Krikorian Premiere Theatres and Penn Cinema, in addition to Fandango's extension of its long-term partnership with Regal Entertainment Group, the nation's largest theater circuit.