In a deal valued at about $506 million, Montreal-based Stingray Digital Group Inc. has acquired all of Newfoundland Capital Corp. Ltd.’s 101 radio stations across Canada. Some firms which were purchased in the deal include Ottawa FM radio stations ‘Live 88.5’ and ‘The New Hot 89.9, the deal will also see eight hundred employees moved from Newfoundland Capital to Stingray, which would bring the company’s headcount to around 1,200.

According to the report on Ottawa Citizen, the acquisition of the Newfoundland Capital stations, which include popular properties in provinces across Canada including Capital 96.3 FM in Edmonton and Z 95.3 FM in Vancouver, gives the company a national reach and radio licences, allowing it broadcast over the air.

With this acquisition, the company would be making its first real venture into traditional media. Previously, they have been best known for radio streaming services, the most remarkable of which includes TV providers such as Rogers Communications and Bell Canada’s home TV. The company, which claims to claims to reach as many as 400 million subscribers in 156 countries around the world through its online presence, also has a section that sells background music for businesses to play in public spaces.

According to information on the company website, Stingray operates 101 radio stations across Canada and reaches about 7.5 million listeners every week in their cars, workplaces, and homes. They offer their services to the country’s largest cities and smallest towns, with radio stations from coast-to-coast, from Vancouver to St. John’s. Their stations also participate actively in the communities they serve and often rank amongst the most popular in their markets. They have radio stations operating in almost all music formats which includetop 40, rock, news/talk, classic hits, and hip-hop. They also boast of on-air talent that entertains and engage listeners. This new acquisition could only mean greater achievements for the company.

“The transaction closed today, signals the creation of Canada’s largest public independent media company, and of that, I could not be more proud,” said Eric Boyko, president, co-founder, and chief executive at Stingray cited in the report on Ottawa Citizen.

“Through the integration of (Newfoundland Capital) assets and extraordinary talent – both on and off the air – we are poised to take Stingray to new levels of growth and success. Radio is a medium that has personal resonance with each of us, whether for music discovery or local news, and I am confident in its future as it evolves within the digital landscape.”

The contract for purchasing Newfoundland Capital’s assets has been planned as a cash and stock purchase. Stingray is planning to offer 0.15371 Stingray subordinate voting shares and $13.17 in cash for every existing share of Newfoundland Capital.

Newfoundland Capital Corporation Limitedhad announced earlier this year, in May 2018 that it has signed a definitive agreement with Stingray Digital Group Inc. (“Stingray”) under which Stingray will acquire all the issued and outstanding shares of the Company.