A consortium led by Canada's biggest telecommunications company, BCE Inc (Bell), is buying Internet company Q9 Networks Inc in a deal worth C$1.1 billion.
Bell has teamed up with Ontario Teachers' Pension Plan, Madison Dearborn Partners, and Providence Equity Partners to acquire one of Canada's largest outsourced data centre operators.
Others in the fray for the bidding that closed last week were Rogers Communications Inc and Telus Corp, the report said.
With 11 data centres in Alberta, British Columbia and Ontario, Toronto-based privately-held Q9 is Canada's leading provider of outsourced data centre solutions for organisations with mission-critical IT operations.
Q9 was listed on the Toronto Stock Exchange until 2008 when it was taken private by US-based private equity firm Abry Partners, for $361-million.
After the acquisition by BCE, Q9 will continue to be headquartered in Toronto and operate as a stand-alone entity and existing Q9 management will continue to run the company.
Under the deal, Bell will provide 30 per cent, or C$180 million of the equity funding, while Teachers, Providence and Madison Dearborn will contribute the remaining 70 per cent, or C$420 million.