Canada’s largest cellco Rogers Communications has acquired Internetworking Atlantic (IAI) to boost its presence in the business and public sector segment. It has also priced a US$1bn bond offering to help refinance debt.
Canada’s largest cellco Rogers Communications (TSE:RCI) has acquired Internetworking Atlantic (IAI) to boost its presence in the business and public sector segment.
The deal has seen the Toronto-based company acquire the target’s Halifax-based data centre, which provides colocation and storage services to organisations across Atlantic Canada, as well as its fibre-optic network, cloud services and employees.
The purchase price was not disclosed.
Nitin Kawale (pictured), president of Rogers’ enterprise business unit, said IAI’s expertise in data centre services, cloud solutions and fibre networking will enable the company to improve services to business customers of all sizes.
“This local expertise and service combined with our national network and business capabilities will provide customers with the solutions they need to drive growth.”
Ken Marshall, Rogers’ vice president EBU sales for the Atlantic region, added that the investment is key to supporting the company’s growing client base, particularly in the large and medium-sized enterprise space.
The Halifax data centre will be Rogers’ first in the region and sixteenth nationally.
Out with US$1bn bond
Meanwhile, Rogers has priced US$1bn of senior notes to refinance existing debt and for general corporate purposes.
The issuance consists of US$700m of 3.625% senior notes due 2025 and US$300m of 5% senior notes due 2044, the telco said in a statement.
The net proceeds are expected to total US$990m, some of which will be used to repay outstanding advances under bank credit facilities.
The sale of the debt securities, which will be guaranteed by wholly-owned subsidiary Rogers Communications Partnership, is expected to close on 8 December.
Rogers reported operating revenue of C$3.38bn (US$2.53bn) for the three months ended 30 September 2015 and adjusted net debt of C$15.55bn (US$11.63bn).
