STINGRAY DIGITAL TO ACQUIRE NEWCAP RADIO OWNER IN $508M DEAL.
Stingray Digital Group Inc. is set to acquire Newfoundland Capital Corp.
in a cash-and-stock deal valued at $508-million.
Newfoundland Capital, which owns and operates broadcaster Newcap Radio, says it has signed a definitive agreement with Stingray, which would acquire all of its issued and outstanding shares.
The Montreal-based company will pay $14.75 per share, payable in a combination of cash and Stingray shares.
Newfoundland Capital says the transaction is valued at approximately $508 million, including the assumption of net debt of roughly $112 million as of Dec. 31.
The deal will be subject to approval of shareholders, customary closing conditions and regulatory approvals.
Stingray chief executive Eric Boyko says the transaction positions the company as a “major player in the Canadian media landscape.”
“I am excited to expand Stingray’s operations into radio broadcasting and bring on board some of Canada’s most popular on-air talent and an experienced sales force, which will help us grow our revenue streams,” Boyko said in a statement.
Newfoundland Capital “reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales, and networking,” Stingray said. “NCC operates 72 local radio stations and 29 repeating stations — also available on web and mobile — in seven (7) provinces from coast to coast. NCC holds the second-largest number of radio licences in Canada. “
Based in Dartmouth, N.S., NCC has about 800 staff.
“Today marks the start of an exciting chapter for NCC,” Rob Steele, chairman of NCC, said in a statement. “By joining forces with Stingray, we are of the view that the synergies will allow our business to move toward even greater success.
NCC shares traded at $13.20 on Wednesday.