CPE Media News (12/19/2018) – Vantage Data Centers, a portfolio company of Digital Bridge Holdings, LLC, Public Sector Pension Investment Board (PSP Investments), and TIAA Investments, has agreed to acquire 4Degrees Colocation from Videotron Ltd., a Quebecor Media Inc. (QMI) subsidiary, for approximately US $200 million or CDN $259 million, subject to certain post-closing adjustments.
This transaction will mark Vantage’s expansion to the Canadian market and increase its coast-to-coast presence in North America to five markets, up from two markets 12 months ago.
In March 2017, a consortium including Digital Bridge Holdings, PSP Investments, and TIAA acquired Vantage Data Centers from Silver Lake.
Early this month, Vantage Data Centers completed US $225 million in debt financing. Combined with its existing liquidity, Vantage said it has more than US $500 million in available capital to fund data center expansions.
In March 2015, Videotron acquired 4Degrees Colocation for CDN $35.5 million including potential earnout payment of CDN $4 million.
photo credit: Vantage Data Centers
Vantage Data Centers Signs Definitive Agreement to Acquire Canadian-Based 4Degrees Colocation
December 18, 2018 | BY Vantage Data Centers
Transaction will Catapult Vantage into a Leading North American Wholesale Data Center Provider with Expansion into the Rapidly Growing Montreal and Quebec City Markets
SANTA CLARA, CA (Dec. 18, 2018) – Vantage Data Centers, a leading provider of data centers in support of business and mission-critical applications, today announced it has signed a definitive agreement to acquire Canadian-based 4Degrees Colocation from Videotron Ltd., a Quebecor Media Inc. (QMI) subsidiary, for approximately US$200 million (C$259 million), subject to certain post-closing adjustments.
This transaction will expand Vantage’s coast-to-coast presence in North America to five markets, up from two markets 12 months ago. The acquisition will add existing data centers in Montreal and Quebec City, which will bring Vantage’s total number of operational facilities to nine and total number of data centers under development to four.
4Degrees operates two facilities in Montreal and Quebec City. The two data centers are Tier III Design and Construction certified, which highlights the facilities’ exceptional quality and reliability, by the Uptime Institute, an independent organization.
Upon transaction closing, Vantage will immediately initiate significant expansion projects in both markets to accelerate 4Degrees’ original plans to bring total capacity up to 31MW.
“Based on extensive dialog with our customers, Vantage identified Montreal and Quebec City as highly attractive markets due to low power costs, tax incentives and excellent fiber connectivity,” said Sureel Choksi, president and CEO, Vantage Data Centers. “The 4Degrees acquisition will accelerate our expansion into these markets, enabling Vantage to better serve hyperscale, cloud and enterprise customers across five strategic geographies. We are thrilled to welcome the 4Degrees team, which shares our commitment to operational excellence, high-quality facilities and sustainable building practices.”
Maxime Guévin, an experienced leader in the construction, sales and management of data centers, will become vice president and general manager of Vantage Canada. Guévin is currently the general manager of 4Degrees Colocation, where he has served for the last four years.
“The 4Degrees team is incredibly excited to join Vantage in providing superior data center facilities across North America,” agreed Guévin. “This deal will marry Vantage’s expertise in the hyperscale business with our extensive knowledge of the rapidly growing Canadian market.”
The transaction is expected to close in the coming weeks.
About Vantage Data Centers
Vantage Data Centers is a leading North American wholesale data center provider in three strategic markets: Silicon Valley, Northern Virginia, and Quincy, Washington. Vantage has seven operational facilities totaling 81MW of capacity and two additional facilities currently under development totaling 51MW. The company provides highly scalable, flexible and efficient data center solutions to hyperscale, cloud and enterprise customers, offering unique value through its commitment to exceptional customer service and sustainability.
For more information, visit www.vantagedatacenters.com
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