US-based Primus Telecommunications Group has taken advantage of the relaxation in Canada’s foreign investment rules governing telcos to acquire Globility Communications Corporation.
Primus, a telecom services provider, already owned 45.6% of…
US-based Primus Telecommunications Group has taken advantage of the relaxation in Canada’s foreign investment rules governing telcos to acquire Globility Communications Corporation.
Primus, a telecom services provider, already owned 45.6% of Globility. Now it has purchased the remaining 54.4% of the firm, according to a company statement.
Before the recent relaxation passed in Ottawa, foreign investors could only own 46.7% in combined direct and indirect stakes in Canadian carriers. Now, that restriction only applies to telcos with market share of 10% or more by revenue.
“The recent changes to the legislation have made this acquisition possible, giving Globility much greater latitude to expand its telecom infrastructure across Canada, including the construction of high capacity, state of the art metro fibre,” said Peter Aquino, CEO of Primus.
The acquisition means the US telco can start building a new fibre network in Ottawa’s business district, expected to be completed by the end of Q3.
Andrew Day, CEO of Primus North America, added: “This will enable Primus Canada, through Globility, to grow its footprint for on-net local, DSL and Ethernet services and to pursue expansion projects into the enterprise and government sectors that require low latency, high bandwidth routes on an all fibre network.”
No financing details were released by the company.