MONTRÉAL, QUÉBEC--(Marketwire - Dec. 6, 2011) - COGECO Inc. (TSX:CGO) announces today that is has entered into an agreement to acquire Métromédia CMR Plus Inc. ("Métromédia"), subject to customary closing adjustments and conditions. Métromédia is a Québec company that operates an advertising rep house in the public transit sector. Métromédia represents over 100 public transit markets notably in Montréal, in other Québec regions as well as in major cities and numerous markets in the rest of Canada.
Louis Audet, President and CEO of COGECO Inc., is delighted with the transaction. "The acquisition of Métromédia, added to our Québec radio station portofolio, is an excellent opportunity to diversify our media activities and create a compelling new media offering for advertisers by combining radio and transit advertising.
Pierre Béland, President of Métromédia, states that this agreement will strengthen and drive the continued growth of one of the largest rep houses specializing in selling advertising in the public transit sector in Canada.
COGECO Inc. will finance this transaction partly through a private placement by the Fonds de solidarité FTQ and Fondaction CSN announced on November 7, 2011, and through its bank credit facility.
The transaction should be closed toward the end of the month of December.
COGECO is a diversified communications company. Through its Cogeco Cable subsidiary, COGECO provides its residential customers with Audio, Analogue and Digital Television, as well as HSI and Telephony services using its two-way broadband cable networks. Cogeco Cable also provides, to its commercial customers, through its subsidiary Cogeco Data Services, data networking, e-business applications, video conferencing, hosting services, Ethernet, private line, VoIP, HSI access, data storage, co-location services, managed IT services, cloud services and other advanced communication solutions. Through its subsidiaries, Cogeco Diffusion and Cogeco Diffusion Acquisitions, COGECO owns and operates 13 radio stations across most of Québec with complementary radio formats serving a wide range of audiences. Cogeco Diffusion also operates Cogeco News, its news agency, feeding 24 independent and community radio stations across Québec. COGECO's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CGO). The subordinate voting shares of Cogeco Cable are also listed on the Toronto Stock Exchange (TSX:CCA).