Rogers Communications, a major Canadian telco, is buying Pivot Data Centers for CA$155m and Granite Networks for $6.25m cash, the company announced earlier this week.
The two acquisitions, combined with the acquisition of Blackiron Data earlier this year, give Rogers Business Solutions (RBS) a stronger position in the data center and hosting services, the company explained. Together, these two businesses currently generate annualized revenues of approximately $30m, according to Rogers.
Both Pivot and Granite provide Rogers with opportunities to acquire established data center businesses with significant expansion capacity in prime markets for these services, the company said. Rogers gains data centers in Ottawa, Toronto, Edmonton and Calgary from the two deals.
AJ Byers, president of Blackiron, said, “The addition of two high quality and growing data center operations will enable Rogers Business Solutions to expand the availability of its reliable and leading-edge data services. 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.”
Pivot Data Centres operates three colocation facilities in Calgary and Edmonton, with capacity of more than 130,000 sq ft. The company also plans to open two additional data centers with more than 110,000 sq ft, expanding capacity by approximately 85%.
Rogers expects to close the Pivot deal in October.
Granite provides colocation, managed services and cloud hosting in Eastern Ontario and Western Quebec. This acquisition has been completed.