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RealTime IT News

Rogers, Vid´┐Żotron Ink Canadian Megamerger

Rogers Communications and Le Groupe Vidéotron Monday agreed to merge through a share exchange, a move which has significant implications for the ADSL and cable market.

With estimated revenue and operating income for fiscal 2000 of $4.4 billion and $1.2 billion respectively, the new entity will enjoy considerable financial flexibility.

The transaction will also result in the creation of Canada's largest broadband communications company with North America's largest contiguous cluster of homes serviced by one integrated network.

With over 5.1 million homes passed, 3.7 million cable customers, and 260,000 high-speed Internet access customers, the merged company is expected to be by far Canada's largest cable company and among the top three suppliers in North America in terms of high-speed Internet access.

The transaction is a major step towards establishing a fully integrated provider positioned to offer a complete bundle of communications services and scaled to compete effectively in the combined Quebec, Ontario, and British Columbia markets as well as leveraging Canada's largest wireless network operated by Rogers AT&T Wireless.

Active in the fields of cable television, Internet access, wireless communications, business telecommunications, Internet portals, publishing, radio, security and, soon, residential telephony, the merged company is equipped to act as a one-stop shop of communications services for close to half of Canadian homes.

Rogers Communications (RG) is engaged in cellular, Digital PCS, paging, and data communications through Rogers AT&T Wireless; in cable television, high-speed Internet access and video retailing through Rogers Cable, and in radio and television broadcasting, tele-shopping, publishing and new media businesses through Rogers Media.

Le Groupe Vidéotron is an integrated communications company with subsidiaries in telecommunications, cable television, Internet services, television production, broadcasting, electronic commerce, and remote surveillance. The Company also owns the largest chain of video stores in Quebec.



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