Montreal-based Yellow Media Inc. (TSX:YLO.UN) has announced plans to buy local search and directories publisher Canpages for $225 million.
Yellow Pages will buy Canpages from an investor group led by private equity firm HM Capital Partners.
Canpages' legal name is Canadian Phone Directories Holdings Inc.
The deal is comprised of a $75 million cash payment to settle third-party debt obligations, and the issuance of $150 million of mandatory exchangeable promissory notes.
"Canpages has built a strong local search business, and we are pleased with the prospects of joining forces," said Marc Tellier, CEO of Yellow Pages Group, a subsidiary of Yellow Media. "It will give us the opportunity to expand our sales force, online capabilities and customer offerings."
Vancouver-based Canpages publishes 84 directories with a circulation of eight million.
Yellow Pages also said it would sell its U.S. directory operations to Ziplocal LP, but the terms of that deal were not disclosed.
Yellow Media's share price range during the past week: $6.20 and $6.19; 52-week high: $6.32; 52-week low: $4.78.