Bell has reached an agreement to purchase all the equity it does not already own in Q9 Networks, an approximately 20-year-old provider of outsourced data centre services helmed by former Bell Aliant President and CEO Karen Sheriff.
Q9 works with large Canadian organizations in order to provide them server space, cloud solutions and other managed technology services.
Bell purchased 34.5 percent of Q9 in 2012 in a joint deal along with Ontario Teacher’s Pension Plan and U.S.-based investors Providence Equity Partners and Madison Dearborn Partners. The total purchase price at that time amounted to $1.1 billion, of which Bell contributed $180 million.
In a release, the company stated that the $675 million acquisition “supports Bell’s ability to compete against domestic and international providers in the growing outsourced data services sector.”
Bell’s investment reflects the growing significance of the outsourced data services and IT market, and builds on the existing offerings of the company’s Business Markets division, which provides information and communications technology solutions including internet and security to corporations, governments and organizations.
In its release, Bell states it expects the transaction to close before the end of 2016.
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