Business as usual for Peer 1 employees during sale: company
It will be business as usual for the Vancouver employees of Peer 1 Network Enterprises, Inc. (TSX:PIX), as the data centre company changes hands in a friendly takeover, says Peer 1 president and CEO Fabio Banducci.
Cogeco Cable Inc. (TSX:CCA) – a Quebec-based Internet, TV and telephone provider – plans to buy Peer 1 for $635 million, or $3.85 per share.
Headquartered in Vancouver, Peer 1 has more than 400 employees and 10,000 customers and operates 19 data centres in Canada, the U.S. and United Kingdom. It provides web hosting, cloud-based services and co-location (dedicated Internet, security and support).
“We are now in a formal, regulatory and legal process,” Banducci told Business in Vancouver. “Once completed, Peer 1 Hosting will become part of Cogeco. We cannot talk in any more detail about the process or pricing. It will be business as usual for employees.
“We are confident that this transaction is in the best interests of our shareholders, our customers, our company and employees.”
The takeover was approved by 62% of Peer 1’s shareholders.
Cogeco owns six data centres and has revenue of $102 million. When combined, the two companies will own 25 data centres, generating revenue of $270 million.
“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,” Said Louis Audet, CEO of Cogeco Cable. “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.”