Shaw Communications Inc. has announced the plans to buy ViaWest Inc., U.S. data centre and cloud services provider.
ViaWest, Denver, Colo.-based, is privately held and controlled by private equity firm Oak Hill Capital Partners. It employees about 350 workers and has over 1,300 customers. In addition, it owns 27 data centres in eight Western U.S. markets.
The acquisition is valuing at $1.2 billion US.
Cogeco Cable Inc. declared aims to buy Peer 1 for $526-million in 2012 and Rogers Communications Inc. purchased Primus Telecommunications Group Inc. s Blackiron Data for $200-million last year.
Shaw chief executive officer Brad Shaw commented "We identified the data centre sector as an attractive opportunity adjacent to our core business and with the acquisition of ViaWest, Shaw gains significant capabilities, scale and immediate expertise in the growing marketplace for enterprise data services.
Brad Shaw stated that the company plans to utilize ViaWest s experience to accelerate development of Canadian data centres. The acquisition is ready to close in September and is subject to U.S. regulatory approval.
It plans to finance the agreement using cash and its existing credit facility and said the transaction would have no material effect on its free cash flow, Brad Shaw further added.