Canadian telecommunications provider Rogers Communications announced on Monday that it is acquiring Pivot Data Centers for cash consideration of $155 million, and Granite Networks for a cash consideration of $6.25 million. With three acquisitions under its belt this year in the data center and hosting space, Rogers will be in a strong position to build out that side of its business.
“With the recent acquisition of BLACKIRON, Rogers made it clear that it wants to build out a Canada-wide data centre footprint to support the build out of its infrastructure services strategy,” Philbert Shih, managing director, Structure Research said. “Pivot gives it significant inventory in a strategic Westerm market and Granite provides presence further to the East bordering on Quebec. Both these providers are focused on colocation but expect Rogers to take BLACKIRON’s hosting and cloud capabilities and set them up in these locations.”
According to Rogers, both Pivot and Granite generate annualized revenues of approximately $30 million. With the acquisitions, BLACKIRON Data, will own and operate data centers in Ottawa, Toronto, Edmonton and Calgary.
Pivot Data Centers will open two additional data centers, expanding its capacity by 85 percent. It currently operates three colocation facilities in Calgary and Edmonton that total 110,000 square feet. The acquisition is expected to close during October 2013.
Granite Networks is based in Ottawa, where it provides colocation, managed services and cloud hosting services to business and government clients in Eastern Ontario and Western Quebec.
“The addition of two high quality and growing data centre operations will enable Rogers Business Solutions to expand the availability of its reliable, and leading-edge data services,” AJ Byers, president, BLACKIRON Data said in a statement. “Both organizations will enhance Rogers Business Solutions BLACKIRON Data offering as customers in key markets will now have access to expanded data capacity, managed and cloud service offerings.”
At the beginning of the year, Canadian cable giant Cogeco completed its acquisition of PEER 1, which is one of the major examples of the consolidation happening in the Canadian hosting and data center market.