Cinedigm Corp. signed a definitive stock purchase agreement to purchase about 29% of the outstanding equity of Starrise Media Holdings Ltd. from two existing holders.

Under terms of the transaction, the company agreed to issue to the sellers a total of 54,850,103 shares of its class A common stock.

"These are the two biggest entertainment markets in the world, with combined Film and Television revenues estimated to be approximately US$180 billion in 2018," Cinedigm Chairman and CEO Chris McGurk said Jan. 2.

The transaction is expected to close in the first quarter of the year.

Starrise Media distributes film content theatrically and to key media platforms in China.