Stingray Music signs agreement to purchase NewCap
It looks as though Drumheller’s local country music radio station will soon have new ownership.
In May of this year Newfoundland Capital Corporation (NCC), the owner of NewCap Radio signed an agreement with Stingray Digital Group, under which Stingray will acquire all the issued and outstanding shares of the company. This is valued at about $506 million, including the assumption of its net debt of about $112 million.
NewCap owns 910 CFCW in Drumheller.
“Today marks the start of an exciting chapter for NCC,” said Rob Steele, Chairman, President and Chief Executive Officer of NCC. “By joining forces with Stingray, we are of the view that the synergies will allow our business to move towards even greater success. Together, we have begun to build a solid foundation for Canada’s next great media group. We expect our combined company will stand out in today’s fiercely competitive market for its world-class talent and complementary service offering. On behalf of NCC’s management and Board of Directors, I am thrilled NCC is joining the Stingray family.”
Stingray is an independent Canadian company that offers multiplatform audio services. According to a news release from Stingray, this transaction marks the company’s entry into the broadcast radio market. Newcap operates 72 local radio stations and 29 repeating stations in seven provinces. It employs about 800.
“It represents a considerable milestone for Stingray — positioning us as Canada’s largest public independent media company — and a valuable opportunity for our stakeholders,” said Eric Boyko, President, Co-founder, and CEO of Stingray. “We have found in NCC an established and trusted partner with a proven track record of delivering results in niche markets across the country. 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. I look forward to welcoming the NCC team to the Stingray family and collaborating with the current management in place.”
On June 27, shareholders of NCC approved of the arrangement.
According to a press release, the transaction remains subject to final court approvals as well as approval from the CRTC.
The transaction is expected to occur by the end of this year.