TSX : MDF
LONGUEUIL, QC, Nov. 14, 2011 /CNW Telbec/ - Mediagrif Interactive Technologies Inc. (TSX: MDF), a leading provider
of e-commerce solutions, announces that it has entered into a
definitive agreement with Yellow Media Inc. through which Mediagrif has
acquired substantially all the assets of LesPAC Inc., for a total cash
consideration of $72.5 million.
LesPAC.com is Quebec's number one classified web site. It reaches 1.8 million
unique visitors per month, attracting national and local advertisers.
With a strong community of 780,000 members, LesPAC.com ranks amongst the most visited web sites in Quebec, all categories
"We are thrilled to have the LesPAC team join the Mediagrif family" said
Claude Roy, President and Chief Executive Officer of Mediagrif. "This
acquisition of LesPAC represents a unique opportunity for Mediagrif to
partner with one of Quebec's most visited website. This transaction
will bring new opportunities given LesPAC's strong brand and
established on-line marketplace for consumers. In addition, we are
pleased to partner with Yellow Media Inc. to deliver additional
services to our users".
The acquisition is financed through Mediagrif's $25 million cash on hand
and committed term debt financing of $40 million. In addition,
Mediagrif has put in place a revolving credit facility of $20 million.
"This financing provides Mediagrif with the financial flexibility
allowing it to execute on its business plan and continue its growth"
said Claude Roy. The transaction is expected to be immediately
accretive to Mediagrif's net earnings. National Bank Financial Inc. is
acting as exclusive financial advisor to Mediagrif and as Lead Arranger
on the debt financing in a syndicate also including The Bank of Nova
About Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc. (TSX: MDF) delivers innovative e-commerce solutions to businesses since
1996. Its web platforms enable clients to find, purchase and sell
products, exchange information, gain access to business opportunities
and manage supply chain collaboration with greater speed and
efficiency. The Company provides e-commerce solutions in the fields of
electronic components, computer equipment and telecommunications,
medical equipment, automotive aftermarket, wine & spirits, diamonds and
jewelry, retail markets and government opportunities. Mediagrif has its
headquarters in Longueuil and has offices in North America and Asia.
For more information, please visit us at www.mediagrif.com or call 1 877 677-9088.
This press release contains certain forward-looking statements with
respect to the Company. These forward-looking statements, by their
nature, necessarily involve risks and uncertainties that could cause
actual results to differ materially from those contemplated by these
forward-looking statements. We consider the assumptions on which these
forward-looking statements are based to be reasonable, but caution the
reader that these assumptions regarding future events, many of which
are beyond our control, may ultimately prove to be incorrect since they
are subject to risks and uncertainties that affect us. We disclaim any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable securities legislation. All
amounts are in Canadian dollars.
SOURCE MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.
For further information:
Mediagrif Interactive Technologies Inc.
President and Chief Executive Officer
Tel.: (450) 449-0102 ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Chief Financial Officer
Tel.: (450) 449-0102 ext. 2135
Toll Free: 1 877 677-9088 ext. 2135