MONTREAL — Cogeco Communications says it plans to buy DERYTelecom for $405 million, adding about 100,000 internet and cable customers in its home province of Quebec.
The chief executive of Cogeco Communications, the group’s main operating company, says DERYtelecom is a strategic fit with territory in areas near to Cogeco’s Quebec footprint.
Cogeco CEO Philippe Jette also says his company has a record of successful acquisitions, including five cable businesses bought in the past five years.
Its definitive friendly agreement is the latest twist in an ongoing battle for cable and internet territory in Canada’s second-most populous province.
Cogeco Communications and its parent Cogeco Inc. are themselves the target of unsuccessful joint takeover attempts by Rogers Communications and Altice USA.
Cogeco estimates it can achieve about $3 million in operational savings over the first year after closing with DERYtelecom, plus gain $40 million of tax benefits.
The transaction is expected to close by February 2021, subject to regulatory approvals.
This report by The Canadian Press was first published Oct. 21, 2020.
Companies in this story: (TSX:CCA, TSX:CGO, TSX:RCI.B)
The Canadian Press