Cogeco Peer 1, a leading provider of colocation, network connectivity and managed services, today announced plans to become a standalone business following its sale to Digital Colony, a global investment firm dedicated to strategic opportunities in digital infrastructure. Digital Colony has reached a definitive agreement with Cogeco Communications Inc. (TSX:CCA) to acquire Cogeco Peer 1, which will remain headquartered in Toronto and adopt a new brand.
Cogeco Peer 1’s portfolio includes over 3,300 route kilometers of owned, dense metro fiber in greater Toronto and Montreal. The company also owns and operates several data centers across North America and Europe which serve a global blue-chip customer base.
As a standalone business, Cogeco Peer 1 will have a fiber division and a data center division in order to assume focus on meeting the needs of customers in each market. The fiber division will be Canada’s first independent, neutral-host provider of small cell and 5G infrastructure and enterprise and wholesale fiber connectivity. The company’s data center division will concentrate on enabling multi-cloud services for enterprises while reinforcing its role as a leading hybrid-solutions managed service provider.
“We are grateful for the support and resources Cogeco Communications has provided as we established a strong fiber footprint in Canada’s two largest cities, and served customers across the globe with secure enterprise data center solutions,” said Susan Bowen, CEO of Cogeco Peer 1. “As we enter our next phase of growth as a standalone company, we will continue to focus on meeting the needs of customers while looking for new ways to innovate and deliver the digital infrastructure solutions they need. We are excited to work with Digital Colony, whose deep knowledge and experience, strong balance sheet and successful track record in the sector will be invaluable as we scale and enter a new era of digital communication.”
“Cogeco Peer 1 is poised for continued success and growth as changes in the sector, including increased demand for connectivity, drive digital infrastructure spending in Canada,” said Marc Ganzi, Managing Partner of Digital Colony. “We look forward to investing in the company, the team and the network assets to continue to build the business and unlock value by providing exceptional solutions to their customers.”
The transaction is expected to close during the second quarter of 2019, subject to customary closing conditions. RBC Capital Markets is acting as sole financial advisor to Digital Colony, Miller Thomson LLP is serving as the firm’s legal counsel, and TD Bank is leading on debt financing. BMO Capital Markets is acting as the exclusive financial advisor to Cogeco Communications, and Stikeman Elliott LLP is providing legal advice.