BCE, known by many as Bell Canada, has partnered with private equity fund managers to buy Q9 Networks.
Bell, Canada's largest telecom company, will purchase the Toronto-based data centre company for $1.1 billion.
Q9, which is among the country's largest outsourced data centre operators, will continue to run as an independent company under current management after the deal closes, Bell said.
Bell will pay $180 million while the Ontario Teachers’ Pension Plan, Providence Equity Partners, and Madison Dearborn Partners will contribute a total of $420 million of the equity funding. Debt financing from Q9 will also help fund the purchase. The deal is expected to close by the end of the year. Bell's recent acquiring spree includes CTV and Astral Media.