The purchase of VMedia will be subject to regulatory conditions due to a license transfer from the CRTC.
While awaiting the verdict of the regulatory authorities on the purchase of Freedom Mobile, Quebecor has quietly made an acquisition that will increase its footprint in the Toronto area.
The parent company de Videotron has acquired independent telecommunications provider VMedia in a transaction that has not been officially announced. The amount of the transaction is unknown.
The transaction was, however, subject to regulatory conditions regarding a license transfer from the Canadian Radio-television and Telecommunications Commission (CRTC). The administrative tribunal published Quebecor's request on its site. The news was first reported by the specialized site CARTT.ca.
VMedia is an Internet provider in Ontario. The company has approximately 200 employees and 50,000 subscribers, mostly concentrated in the Greater Toronto Area. However, the company was struggling to accelerate its growth due to difficult access to capital.
VMedia will continue to operate under the same brand, but will be able to take advantage of Quebecor's financial resources to finance its growth, explained George Burger, one of the co-founders during an interview with the specialized media.
< p class="e-p">Quebecor has confirmed by email that it has acquired all of the shares of VMedia, but that the amount of the transaction remains confidential.
The President and CEO of Quebecor, Pierre Karl Péladeau, has said on several occasions that the company founded by his father was ready to expand its activities outside Quebec.
The businessman believes that the Quebec market has become quite mature and he believes that the rest of Canada, where competition is less strong, would offer lucrative business opportunities .
Quebecor has made a $2.85 billion bid for Freedom Mobile, the wireless division of Shaw Communications. The Freedom sale seeks to have Rogers accept Shaw's offer to buy Shaw for $26 billion. Both transactions are conditional on the green light from regulatory authorities.
The purchase of VMedia, which offers IPTV, Internet connection and wireless telephony, could be complementary Freedom Mobile's wireless business. The company has complementary innovative solutions that will be exploited to their full potential across Canada, Quebecor said by email. VMedia is now among the key partners that will accelerate Quebecor's plan to create greater competition in Canada.
In 2021, the Montreal company acquired 294 blocks spectrum in the 3500 MHz band, for an amount of $830 million. More than half of this investment is concentrated in four Canadian provinces: Ontario, Manitoba, Alberta and British Columbia.