News & Newsletter

December 21, 2012
Cheverny Capital Advises Cogeco Cable Inc. On Its $635 Million Agreed Bid For Peer 1 Network Enterprises

21 December 2012

Cogeco Cable Inc.(TSX:CCA) today announced a $3.85/share bid for PEER 1 Network Enterprises, Inc. (TSX:PIX). This equates to an enterprise value of $635 million. The combined entity will operate 19 data centres and 21 points-of-presence in Canada, Europe and the USA and will offer managed services, colocation, managed hosting and cloud services. The transaction is fully supported by the Board of Directors of PEER 1 and lock-up agreements representing in aggregate 62% of PEER 1’s fully diluted shares outstanding are in place.

“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. 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” said Louis Audet, President and CEO of Cogeco Cable.

Cheverny Capital, a Montreal-based merchant bank, acted as a financial advisor to Cogeco Cable in this transaction. The partners of Cheverny Capital have decades of experience providing strategic advice, counsel on M&A and assistance in fundraising to companies in the technology, media and telecoms sectors; moreover Cheverny has advised on many data centre transactions (including the 2011 purchase of QTI by Cogeco Cable) and its private equity arm is an investor in Fibermedia, a New York-based provider of colocation services.