MONTREAL and VANCOUVER – Cogeco Cable is buying Peer 1 Network Enterprises for $526 million as it continues to focus on expanding its cloud and data computing services. Cogeco is offering $3.85 for each Peer 1 share, a premium of 30.5% compared to the stock’s closing price on Thursday.
Peer 1 is one of the world's leading internet infrastructure providers, specializing in managed hosting, dedicated servers, cloud services and colocation. The acquisition of Peer 1, combined 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. Peer 1's primary network centre and headquarters are located in Vancouver, Canada.
"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. 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" said Louis Audet, President and CEO of Cogeco Cable.
"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," said Fabio Banducci, President and CEO of Peer 1. "Both of our companies strive for exceptional customer service and technological excellence. Cogeco Cable's Offer is attractive to our shareholders and recognizes the value and potential of our company, management and employees."
"Peer 1 is a leading business and technology service company with talented and committed employees and long-term customer relationships," added Audet. "It further underscores our ongoing commitment to support our customers as they expand their businesses locally and globally. We warmly welcome Peer 1 professionals and believe that our combined businesses will provide new and larger growth opportunities for all our employees and customers."
