Canadian media and broadcasting company Corus Entertainment announced Wednesday it will purchase Shaw Media, the programming division of Shaw Communications, in a deal valued at $1.9 billion (2.65 Canadian dollars).
The deal, which is expected to close in the third quarter of 2016, will allow Corus to boost its offering for women, children and families with the addition of channels like HGTV Canada and Food Network Canada from Shaw Media.
Shaw Media’s other assets include DIY Network Canada, Slice, Lifetime, History Canada, H2, Showcase, National Geographic Canada, Nat Geo Wild Action, MovieTime, IFC Canada, Canada, Global News: BC1, BBC Canada, DejaView, Crime + Investigation, DTOUR and FYI, as well as the traditional national Global Television service with stations in Vancouver, Okanagan in Edmonton, Calgary, Lethbridge, Saskatoon, Regina, in Winnipeg, in Toronto, in Montreal, in Halifax and Saint John.
All told, the acquisition will expand Corus’ portfolio to cover 45 specialty television networks, 15 traditional TV stations, 39 radio stations and a number of other digital assets.
In a statement, Corus CEO Doug Murphy said the deal will redefine the Canadian media landscape and give Corus the content and team it needs to support future growth.
The sale will also benefit Shaw Communications, which can use the funds from the sale to finance its $1.6 billion acquisition of Canadian wireless provider WIND Mobile.
Under the terms of the deal, Shaw Communications will own 39 percent of all Class A and B shares in Corus.
In fiscal year 2015, Corus and Shaw Media generated a total operating revenue of around $1.3 billion (1.9 billion Canadian dollars) in revenue, Corus said.
Corus said it expects the deal to generate nearly $28 million to $35 million (40-50 million Canadian dollars) in annual cost synergies over the next two years.
The transaction is subject to approval from the Canadian Radio-television and Telecommunications Commission. Corus’ minority shareholders will take up the issue at a special meeting in March, Corus said.