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Investor group and Bell to acquire Q9 Networks for $1.1 billion

An investor group consisting of the Ontario Teachers' Pension Plan (Teachers), Providence Equity Partners, Madison Dearborn Partners LLC and BCE Inc. (Bell) have announced an agreement to acquire Canadian data centre operator Q9 Networks Inc....


June 6, 2012  


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An investor group consisting of the Ontario Teachers’ Pension Plan (Teachers), Providence Equity Partners, Madison Dearborn Partners LLC and BCE Inc. (Bell) have announced an agreement to acquire Canadian data centre operator Q9 Networks Inc. for $1.1 billion.

Under the agreement, Teachers, Providence and Madison Dearborn will contribute 70%, or $420 million, of the equity funding and Bell will provide the remaining 30%, or $180 million. New debt financing by Q9, already committed, will also fund a portion of the acquisition. The transaction is expected to close before the end of 2012, subject to regulatory approval and customary closing conditions.

With 11 data centres in Alberta, British Columbia and Ontario, Q9 will continue to be headquartered in Toronto and operate as a standalone entity. Existing Q9 management will continue operating the company including CEO Osama Arafat and Paul Sharpe, its president and chief operating officer.