Shareholders of Peer 1 got an early Christmas present this year.
Montreal-based Cogeco Cable has acquired Vancouver's Peer 1 Network Enterprises for cash at a rate of $3.85 per share, a 32% premium. The total value of the transaction is roughly $635 million.
Peer 1 is an internet infrastructure providers, specializing in managed hosting, dedicated servers, cloud services and colocation. Combining it with Cogeco Cable's existing data centre capabilities will increase the scale and scope by adding the capability to service an additional 10,000 businesses worldwide through 19 data centres and 21 points-of-presence across North America and Europe, says Cogeco.
"Data centre services are a key strategic focus for Cogeco Cable, and this acquisition is consistent with Cogeco Cable's commitment to grow its presence in the sector," explains Cogeco CEO Louis Audet. "This acquisition enhances the company's ability to provide complex co-location and managed data centre services to our customers. There are significant opportunities for growth including increasing Cogeco Cable's penetration of the small and medium-sized business segment, gaining market share in the enterprise services market and maximizing the potential of current services offered."
"Cogeco Cable is a well positioned telecommunications company in Canada and its commitment to invest growth capital in the internet infrastructure business, and demonstrated success in serving the technology needs of enterprises makes it an ideal match for Peer 1," added Fabio Banducci, CEO of Peer 1. "Both of our companies strive for exceptional customer service and technological excellence."
"Peer 1 is a leading business and technology service company with talented and committed employees and long-term customer relationships," continued Louis. "It further underscores our ongoing commitment to support our customers as they expand their businesses locally and globally."