Stingray makes an acquisition in the United States

Montreal music service provider Stingray begins the year with the second largest acquisition in its history.

Richard Dufour
Press

This time, Stingray purchases InStore Audio Network, a major commercial audio network in the United States.

The transaction announced early Wednesday evening is valued at around sixty million dollars.

InStore Audio Network’s revenue reached $ 18.5 million in 2021. The company has only a dozen employees.

Management points out that InStore Audio Network reaches nearly 100 million consumers each week at more than 16,000 grocery stores and pharmacies in the United States such as CVS, Rite Aid, Albertsons, Safeway, etc.

For Stingray, this is a paradigm shift as the company now offers much more than music to its customers.

And this acquisition is significant since Stingray is relying in particular on its commercial multimedia network to fuel its future growth.

Last month, Stingray announced that it would produce digital audio ads that it will integrate into retailer Dollarama’s stores connected to its media network. Stingray also has a similar agreement with the Metro grocer.

“In Canada, we expect to have 5,000 locations within a few months. In the United States, 16,000 are bought at once. It’s three times bigger than you think you are in Canada, ”said Eric Boyko, president, co-founder and CEO of Stingray in an interview.

“More and more agencies and brands want to reach consumers directly in the business environment by leveraging innovative digital-centric advertising solutions,” he says.

“The acquisition of InStore Audio Network allows us to consolidate our presence in the US market and increase our revenues in the growing category of media for commercial spaces. ”

Stingray’s business model continues to be based on a strategy of growth through acquisitions. Management had in the past set the goal of doing four or five per year.

Stingray has made more than 45 since its founding in 2007. The largest remains the half-billion dollar one made four years ago. The purchase of around 100 radio licenses in seven provinces of English Canada in 2018 that belonged to Newfoundland Capital Corp had enabled Stingray to make a breakthrough in broadcasting.

Stingray shares fell 2% Wednesday to close at $ 6.86 on the Toronto Stock Exchange. The stock has more than doubled in value since its March 2020 low, but is still far from its high of $ 11 reached in 2018 just before the acquisition of radio stations from Newfoundland Capital Corp.

Stingray has been listed on the stock market since 2015.