Cogeco is expanding its portfolio of media outlets that already includes a cable network, TV and radio stations, and a news agency, with the acquisition of an advertising rep firm.
The company being purchased, Metromedia, specializes in the public transit sector. It represents more than 100 public transit markets in major markets across Canada, including Montreal.
No purchase price was given. Cogeco said it will finance the transaction partly through a private placement by the Fonds de solidarite FTQ and Fondaction CSN announced last month, and partly with funds from a credit agreement.
Louis Audet, president and CEO of Cogeco, is delighted with the transaction.
"The acquisition of Metromedia, added to our Quebec radio station portfolio, is an excellent opportunity to diversify our media activities and create a compelling new media offering for advertisers by combining radio and transit advertising."