In the week that beleaguered large-format operator Imax Corp. put itself onto firmer financial ground by repurchasing $42m of its own debt, another large format operator in the tight North American exhibition market has secured its future.

Iwerks Entertainment yesterday completed its previously announced strategic merger with SimEx, which sees Iwerks becoming a wholly-owned subsidiary of the simulation technology company .

Iwerks' 3,554,301 shares were cancelled and automatically converted into the right to receive approximately $0.63 in cash, without interest.

"The combination of Iwerks and SimEx will be a powerful force in the large format and ride simulation industry," said Gary Matus, CEO of Iwerks. "We have worked for years to achieve this objective and are very energised about our future."

"Our company and employees look forward to the synergies with SimEx that will allow the new combined company to build upon the successful theatrical experiences that each has produced to date," said Don Iwerks, chairman of the board of Iwerks.

"With the leadership of Michael Needham, the SimEx/Iwerks team will be a major contributor in the "out of home" entertainment experience."

Iwerks was founded in 1986 and has nearly 200 installations in 38 countries.