BCE Inc. (TSX/NYSE: BCE) (Bell) has entered into a definitive agreement to sell 25 data centres at 13 sites to global interconnection and data centre company Equinix, Inc. (NASDAQ: EQIX), in an all-cash transaction valued at CDN $1.04 billion.
Equinix will acquire 13 sites representing 25 Bell data centre facilities in 8 cities across Canada. Bell will continue to own and operate 5 other data centres that are located in its network central offices in Calgary, Halifax, Saint John, St. John’s and Toronto.
The transaction is expected to close in the second half of 2020.
In October 2012, Bell, Ontario Teachers’ Pension Plan Board, Providence Equity Partners and Madison Dearborn Partners acquired Q9 Networks and its 11 data centres in Alberta, British Columbia and Ontario for $1.1 billion from ABRY Partners which bought Q9 for $361 million in 2008. Bell paid $185 million for its 35.3% stake while Ontario Teachers’, Providence and Madison Dearborn contributed $430 million for the remaining stakes.
In October 2016, Bell acquired the remaining 64.6% equity interest for $680 million including Q9 net debt but excluding BCE’s prior ownership interest. Following the acquisition, Q9 combined with Q9 Networks and Bell Business Markets to operate Bell data center business.
photo credit: Q9
News Release
Bell to sell 25 data centre facilities to Equinix Français
Transaction underscores Bell’s focus on investment in networks and service innovation
Bell Business Markets becomes first Equinix Platinum Partner in Canada
MONTRÉAL, June 1, 2020 /CNW Telbec/ – BCE Inc. (Bell; (TSX: BCE) (NYSE: BCE)) today announced it has entered into a definitive agreement to sell 25 data centres at 13 sites to global interconnection and data centre company Equinix, Inc. in an all-cash transaction valued at Cdn $1.04 billion.
“This transaction reinforces Bell’s strategy to focus investment on the network infrastructure, content and services necessary to advance how Canadians connect with each other and the world. Equinix, with its expanding platform of data centres here in Canada and worldwide, is well-positioned to maximize the opportunities these facilities represent for Canadian businesses in an increasingly global and interconnected data sector,” said Mirko Bibic, President and CEO of BCE Inc. and Bell Canada.
“Our strategic redeployment of capital further underscores Bell’s commitment to champion customer experience by leading investment in communications networks and services, especially as Canada manages and recovers from the COVID-19 crisis,” said Mr. Bibic. “As part of ensuring a seamless customer experience for our enterprise clients, we are also pleased to announce today a partnership between Bell Business Markets and the Equinix Platform of global data centre services.”
Equinix is acquiring 13 sites representing 25 Bell data centre facilities in 8 cities across Canada; Bell will continue to own and operate 5 other data centres that are located in its network central offices in Calgary, Halifax, Saint John, St. John’s and Toronto. The transaction is expected to close in the second half of 2020 subject to customary closing conditions including regulatory approval.
Equinix’s Platinum Partner in Canada
As part of the transaction, Bell Business Markets becomes the first Equinix Platinum Partner in Canada, which will provide Bell enterprise clients with full access to the international scale of Equinix’s advanced integrated network and cloud solutions.
“Our new partnership with Equinix, built on the strength of Bell’s network, cloud service innovation and experienced professional services team, combined with Equinix’s global platform of interconnected data centres and business ecosystem, will deliver a superior customer experience for our Canadian enterprise clients,” said Tom Little, President of Bell Business Markets. “We look forward to working together to enhance the reach of our customers’ growing global digital operations while ensuring Canada remains a world leader in digital transformation.”
About Bell
Canada’s largest communications company with more than 22 million consumer and business connections, Bell provides advanced broadband wireless, TV, Internet and business communication services throughout the country. Bell Media is Canada’s premier multimedia company with leading assets in television, radio, out of home and digital media. Founded in Montréal in 1880, Bell is wholly owned by BCE Inc. (TSX, NYSE: BCE). To learn more, please visit Bell.ca or BCE.ca.
The Bell Let’s Talk initiative promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let’s Talk Day and significant Bell funding of community care and access, research and workplace leadership initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.
Media inquiries:
Nathan Gibson
905-614-9596
nathan.gibson@bell.ca
@Bell_News
Investor inquiries:
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca
SOURCE Bell Canada