Cogeco Cable to acquire PEER 1
Canada’s Cogeco Cable has announced plans to acquire Vancouver-based infrastructure company PEER 1 Network Enterprises for approximately $533 million.
The company said that acquiring PEER 1 would increase the scale and reach of its IT hosting business and enhance its data centre capabilities.
Cogeco said it is offering C$3.85 per PEER 1 share, at a premium of around 32%. PEER 1’s assets include 19 data centres and 21 PoPs throughout North America and Europe.
“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 maximising the potential of current services offered” said Louis Audet, president and CEO of Cogeco Cable.
The transaction has been approved by PEER 1’s board of directors and shareholders representing 62% of the company’s shares have agreed to the deal. However, PEER 1 does hold the right to consider and accept superior proposals.
Should a counter bid emerge Cogeco will be given five days to file a matching bid. There will be a termination fee equivalent to C$18.5 million paid to Cogeco if a superior proposal is accepted by PEER 1.
National Bank Financial acted as financial adviser and McCarthy Tétrault LLP acted as legal adviser to Cogeco Cable. PEER 1 was advised by RBC Capital Markets and Torys LLP acted as legal adviser.