The deal is likely to close before the end of June. International investment company Digital Colony is currently buying Cogeco Communications data center business, Cogeco Peer 1, for $546 million. Peer 1, that was acquired by Cogeco at 2013, will keep its Toronto headquarters nevertheless provide services under a brand new brandnew.
Urged to sell
Peer 1’s portfolio comprises over 3, 300 route km of dense metro fiber at the greater Toronto region and Montreal. The company also owns and operates multiple data centers around Europe and North America.
The sale comes 2 years after Cogeco was advocated by analysts to sell its information center business. Macquarie Research previously indicated the company can unload its facilities for about $600 million, and put the money towards purchasing the stake in its core business owned by its rival, Rogers Communications – worth roughly $790 million. Digital Colony is a global investment company which focuses on mobile and Internet infrastructure. Cogeco is the third largest cable operator in North America, with its Canadian business branded as Cogeco Connexion. In the united states, the company operates 16 data centers around 11 states including Maine and Florida.
As part of the deal, Cogeco Communications will maintain significant fiber ability in Toronto and Montré, al. Susan Bowen, the Chief executive officer of Peer 1, said: We’re grateful for the support and resources Cogeco Communications has supplied because we established a strong fiber trail in canada two biggest cities, and served clients across the world with a secure enterprise data center solutions. The transaction is likely to close throughout the second quarter of 2019. Earlier this season, venture IT giant Oracle opened its first Canadian information center in Toronto. Canadian colocation business eStruxure has also expanded its data center footprint in Vancouver, adding 1MW of power capability. The company has also hired Andrew Fowler, an industry veteran with 30 decades of experience – such as positions at Cologix and Peer 1 – to lead its sales operations in Western Canada.