Cinram International Inc. has entered into an agreement to purchase American interactive software and games distributor Ditan Corporation. The transaction is expected to close in the second quarter of 2007.

Under the terms of the agreement, Cinram, based in Markham, Ontario, will acquire Ditan Corporation for $50 million in cash, plus additional cash consideration to be earned upon the achievement of unspecified future performance.

Ditan is privately held and distributes direct-to-store and via sub-distributors. Their customers include video game publishers, major retailers and home video studios. Their customers include video game publishers,major retailers and home video studios. The company has 180 employees.

"Ditan's strong relationship with the interactive software industry andwell established footprint will provide Cinram with a point of entry into a new industry that is directly adjacent and complimentary to ours," said Cinram CEO Dave Rubenstein.