Stingray Digital Group Inc. is set to acquire Newfoundland Capital Corporation 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.
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The Montreal-based music and digital experience provider 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.
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The transaction will be subject to approval of shareholders, customary closing conditions and regulatory approvals.
Stingray’s chief executive and president Eric Boyko says the transaction positions the company as a “major player in the Canadian media landscape.”