Vantage Data Centers to buy Canada’s 4Degrees Colocation for $200m
Vantage Data Centers is set to acquire 4Degrees Colocation over the coming weeks in a $200 million (CDN $259m) deal.
Acquiring data centre operator 4Degrees Colocation will help to catapult Vantage into becoming a more prominent wholesale data centre provider, expanding its coast-to-coast presence in North America to five markets, up from two markets just 12 months ago.
“Based on extensive dialog with our customers, Vantage identified Montréal and Québec City as highly attractive markets due to low power costs, tax incentives and excellent fibre connectivity,” said Sureel Choksi, president and CEO, Vantage Data Centers.
“The 4Degrees acquisition will accelerate our expansion into these markets, enabling Vantage to better serve hyperscale, cloud and enterprise customers across five strategic geographies. We are thrilled to welcome the 4Degrees team, which shares our commitment to operational excellence, high-quality facilities and sustainable building practices.”
There will be rapid expansion into the Montréal and Québec City markets, where 4Degrees Colocation has facilities, and the acquisition will bring Vantage’s total number of operational facilities to nine and total number of data centres under development to four.
The two Montréal and Québec City data centres are Tier III design-and-construction-certified, which highlights the facilities’ quality and reliability, by the Uptime Institute. Upon the transaction closing, Vantage will immediately initiate significant expansion projects in both markets to accelerate 4Degrees’ original plans to bring total capacity up to 31MW.
As part of the transaction, Maxime Guévin, who is presently and has been the general manager of 4Degrees for the last four years, will become vice president and general manager of Vantage Canada.
“The 4Degrees team is incredibly excited to join Vantage in providing superior data centre facilities across North America,” agreed Guévin. “This deal will marry Vantage’s expertise in the hyperscale business with our extensive knowledge of the rapidly growing Canadian market.”
Last year, Public Sector Pension Investment Board (PSP Investments) partnered with Digital Bridge Holdings LLC and TIAA Investments to acquire Vantage from Silver Lake Partners. A definitive agreement was signed this week by PSP Investments for 4Degress Colocation from Videotron, a Quebecor Media Inc. (QMI) subsidiary, and is subject to certain post-closing Montréal-based adjustments.
Vantage Data Centers is based in Santa Clara, California, where the company completed the construction of a new facility on its Santa Clara campus, adding 15MW of IT load to the site, in September. The site now totals 75MW split across five data centres.