Join the Q: BCE and group of funds buy data centre firm Q9

6 Jun 2012

Canadian telecoms group BCE, parent of Bell Canada and Bell Aliant, has partnered a group of private equity funds to purchase data centre operator Q9 Networks for CAD1.1 billion (USD1.06 billion), reports Reuters. Toronto-based Q9 is one of Canada’s largest outsourced data centre operators and will be run as an independent company under current management after the deal closes, which is expected by the end of 2012, BCE said. BCE has agreed to pay CAD180 million and Ontario Teachers’ Pension Plan, Equity Partners and Madison Dearborn Partners will contribute CAD420 million of the equity funding; newly-committed debt financing from Q9 (provided by Bank of Montreal, Royal Bank of Canada and Toronto Dominion Bank) will also help fund the purchase. Q9 has eleven data centres and offers co-location, bandwidth, dedicated servers, firewalls, load balancing, virtual private networking (VPN) and back-up/restore capabilities to protect and manage customer data remotely.

Canada, BCE (old), Bell Canada Enterprises (BCE)