Quebecor has quietly acquired VMedia as a part of its broader goal to grow its service outside of its home turf.
Neither company disclosed the deal’s financial details, nor its status, on their respective news pages. It came to light only after it had gained approval from the Canadian Radio-television Telecommunications Commission (CRTC), as first reported by Cartt.ca.
Founded in 2013, VMedia is an independent service provider that provides internet, TV, and home security solutions to residents in Ontario, Quebec, Alberta and British Columbia.
This small but significant acquisition reinforces Quebecor’s efforts to expand its services outside of Quebec. In addition to VMedia, Quebecor is also poised to acquire Freedom Mobile, Canada’s fourth largest carrier, from Shaw Communications for C$2.85 billion.
If the deal is approved, Quebecor will have to dig deep into its pockets to support and develop Freedom’s network, which the company said it’s committed to doing.
Quebecor’s Q1 2022 financial report posted an overall revenue of C$1.09 billion, down 0.3 per cent from the same period last year. It saw a net increase of 13,800 revenue-generating units, including 24,500 in mobile services.
George Burger, VMedia’s co-founder, told the Toronto Star that the acquisition allows the company to provide better deals to consumers by leveraging Quebecor’s stronger financial backing. In the same interview, Burger said scrapping CRTC’s 2019 wholesale rate played a role in its decision to sell.
VMedia criticized the CRTC when it reversed its planned 2019 wholesale rates due to errors in its analysis. The company had previously called for the resignation of Ian Scott, CRTC’s chairperson.