Stingray to buy Newfoundland Capital Corporation
Montreal-based music and video services provider Stingray has signed an agreement to acquire Newfoundland Capital Corporation of Dartmouth. The transaction is valued at approximately $506 million. Newfoundland Capital Corporation owns Newcap Radio, which operates 72 radio stations and 29 repeating signals nationally. Stingray specializes in multi-platform music and video services, as well as digital presentations for pay television operators, commercial clients, mobile operators and consumers. When the transaction closes, Rob Steele will depart the positions of chairman, president and CEO of NCC and Ian Lurie, chief operating officer of NCC, will head Stingray's newly-formed radio division.
"This transaction with NCC comes after months of careful review," said Eric Boyko, president and chief executive officer of Stingray. "It represents a considerable milestone for Stingray, positioning us as a major player in the Canadian media landscape, and is a valuable opportunity for our stakeholders. 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."