Cogeco sells Cogeco Peer 1 for CAD 720 mln

News Broadband Global 27 FEB 2019
Cogeco sells Cogeco Peer 1 for CAD 720 mln
Cogeco Communications has agreed to sell Cogeco Peer 1 to investment firm Digital Colony for CAD 720 million. Under the terms of the deal, Cogeco will keep fibre capacity in Toronto and Montreal. The company also signed a commercial agreement with Digital Colony to further develop their respective businesses in the future. 

Cogeco said the deal will give it more flexibility to pursue both organic and acquisition opportunities. The company will use sale proceeds to pay back debt and to buy back certain subordinate voting shares. 

Digital Colony said Cogeco Peer 1 will become a standalone business, and adopt a new brand. The company’s headquarters will remain in Toronto. Cogeco Peer 1’s portfolio includes over 3,300 route km of owned, dense metro fibre in greater Toronto and Montreal. The company also owns and operates several data centers across North America and Europe. As a standalone business, Cogeco Peer 1 will have both a fibre and a data centre division. Digital Colony said the fibre division will be Canada’s first independent, neutral-host provider of small cell and 5G infrastructure and enterprise and wholesale fibre connectivity. The company’s data center division will concentrate on enabling multi-cloud services for enterprises while reinforcing its role as a leading hybrid-solutions managed service provider. 

The transaction is subject to the usual closing conditions and is expected to close in the third quarter. 

 Cogeco Communications acquired Peer 1 Hosting in 2013.

Categories:

Fixed

Companies:

Peer 1 Hosting,  Cogeco Communications

Regions:

Global

Countries:

Canada

Tags:

Hosting - cloud - data centres, Fibre, Corporate strategy, M&A buyouts & divestments

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