Videotron pushes further into fibre business with $125 million Fibernoire acquisition

Igor Bonifacic

January 7, 2016 6:30pm

Apple’s not the only company that grew a bit bigger today. Here in Canada, Videotron today announced the purchase of Fibernoire, a Montreal-based company that provides fibre-optic connectivity to businesses across Quebec and Ontario, for $125-million.

As a part of the deal, all of Fibernoire’s approximately 60 employees will stay on with the company, including its three original founders.

“This transaction will strengthen Videotron’s leadership in the business telecom market,” said Manon Brouillette, president and CEO of Videotron, in a statement issued to MobileSyrup. “Combining our expertise and our distinct but complementary facilities will equip us to continue our growth in the Québec business market.”

The past couple of months have seen significant movement in Canada’s fibre industry. In November, MTS announced the sale of Allstream, its enterprise fibre subsidiary, for $465 million to an American company called Zayo Holdings Inc. MTS had spent the past two years prior to the announcement looking for a suitable buyer for Allstream after the Government of Canada axed its previous proposed deal with Egypt’s Accelero Capital Inc over national security concerns. And Bell and Telus both announced fibre-to-the-home projects in Toronto and Vancouver, respectively.