North American out-of-home media company Rouge Media Groupannounces a partnership with Toronto-based financial holding companyFairfax Financial, which invests primarily in insurance companies.
Under the agreement Fairfax acquires a majority stake in Rouge Media, which says the deal will allow it to grow its current and future operations in the U.S. and Canada and potentially grow further through strategic acquisitions.
The companies say Martin Poitras, founder, president and CEO of Rouge Media, along with the current management team, will continue to manage the strategic direction and daily operation of the company.
“We are excited not only to partner with Martin and the entire Rouge Media team, but also to be part of the long-term international expansion of their tremendous, scalable business,” says Paul Rivett, president of Fairfax.
“After reviewing all our options over the past few years, it became clear that, for the future of Rouge Media, Fairfax was the ideal partner to support our planned growth strategy,” says Poitras, whose company entered the U.S. market four years ago. “They have an inspiring story and a strong track record of supporting Canadian entrepreneurs who have seen success over the long term. It was also vital for us to find a partner that shared similar business values and practices, as well as offer long term shareholder value. Fairfax thinks big and so does Rouge. They are an incredibly supportive partner and we will take our growth one step at a time, ensuring each new asset is integrated properly before moving to the next phase. We have a solid 10-year plan that we have already begun to execute on, which includes increasing markets beyond North America.”
An immediate result of the Fairfax investment is Rouge Media’s recent acquisition of On Campus Media in the U.S. "To work for blue chip U.S. brands and marketers, you must have the necessary scale. The acquisition of On Campus Media’s digital and mobile assets gives us immediate exclusivity in over 450 U.S. colleges. It was a no-brainer,” says Poitras.