Fairfax Financial acquires majority stake in Rouge Media
TORONTO, June 17, 2016 /PRNewswire/ - Rouge Media Group, a leading North American out-of-home ("OOH") media company, announced today its partnership with Fairfax Financial ("Fairfax") of Toronto. The investment made by Fairfax, which now owns a majority stake in Rouge Media, will allow the company to grow its current and future activities in the US and Canada through expansion within its current platforms as well as through strategic acquisitions. Martin Poitras, 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.
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"Rouge Media is a Canadian success story led by its founder, Martin Poitras, that has been profitable since inception and has innovatively grown its proprietary brand in specialized key media markets over the last decade", said Paul Rivett, President of Fairfax. "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."
Rouge Media has transformed the place-based "OOH" media landscape in Canada over the last decade. The company has quickly evolved from being the first to implement premium static large format signage within targeted indoor environments, to being the first to dominate the same environments with an interactive digital offering. The strategic decision to enter the US market was made four years ago after a careful analysis of its business model and the scalability of its networks and products.
"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. 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," said Poitras. "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 US. "To work for blue chip US 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 US colleges. It was a no brainer," said Poitras.
Rouge Media will also shortly unveil new innovations within the digital OOH and mobile space in both the US and Canadian markets. Concludes Poitras, "We are in one of the most exciting media categories to be in. With targeted and high dwell time environments, the place-based OOH market is a high growth channel that also aligns seamlessly with the omnipresence of mobile technology. We are thrilled to be scaling the business at this pivotal time for media with Fairfax beside us."
ABOUT ROUGE MEDIA
Rouge Media is a leading North American media company connecting brands with millions of consumers on their daily journey out-of-home. Rouge delivers high impact media and marketing opportunities with trusted proprietary access to university students, 18-34 and Women 18+ across North America.
SOURCE Rouge Media Group
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