N.L. broadcasting empire sold in $508M deal

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.

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.

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."