Bell Canada Enlists Some Friends to Acquire Q9 Networks

By: Kuljit Grewal  |   June 4th, 2012   |   Business, News, O Canada

With the aid of various private equity firms, Bell Canada (also known as BCE Inc.) has acquired Q9 Networks. The acquisition by Canada’s largest telco totals an impressive $1.1 billion; a figure they saw fit for one of Canada’s largest outsourced data companies.

 

According to Bell, Q9 will continue to operate as an independent business entity with its full management team remaining intact. Q9 had become a target for Bell due to their aggressive move towards cloud-computing services, which many (including ourselves) consider the next step in business information technology. It is believed that the acquisition will go a long way in aiding Bell leverage their infrastructure and existing data centres as they roll-out their new LTE network, Internet protocol TV as well as Fibe, their new fibre optic internet product.

 

According to several media sources, BCE contributed $180 million to the deal while the Ontario Teachers’ Pension Plan along with U.S. Private Equity firms Madison Dearborn LLC and Providence Equity Partners LLC will contribute a cumulative $420 million. The remaining $500 million will be funded by new debt that has already been arranged by Q9.

 

It is worth noting that Bell’s rivals Rogers Communications Inc. and Telus Mobility had also kicked the tires regarding a deal to acquire Q9. It is clear that the Toronto-based Q9 has a tremendous amount of value due to their 11 data centres that will aid Bell in managing their ever-growing data as well as provide similar services to other clients.