Shaw Communications To Buy ViaWest

(RTTNews) - Shaw Communications Inc. (SJR) Thursday said it has agreed to buy ViaWest Inc., a North America data-center service provider, for an enterprise value of $1.2 billion, as the company aims to improve its data-center offerings.

Shaw agreed to buy ViaWest from Oak Hill Capital Partners and others shareholders as it expects the deal to help accelerate the development of its Canadian data center platform. Alberta, Canada-based Shaw has agreed to pay $830 million in cash and assume a debt of $370 million, bring the total value of the deal to $1.2 billion

"The ViaWest acquisition provides Shaw a growth platform in the attractive data center sector and is another significant step in expanding our technology offerings for mid-market enterprises in Western Canada, building on the growth from our 2013 Envision acquisition," said Chief Executive Officer, Brad Shaw.

ViaWest has grown from five data centers in two markets to 27 centers in eight key Western US markets, including Denver, Dallas, Austin, Salt Lake City, Las Vegas, Portland, Minneapolis and Phoenix. ViaWest employs over 350 people and services more than 1,300 customers in seven states.

The acquisition is expected to close in September, subject to regulatory approvals. The deal will be funded using a combination of cash on hand and existing credit facility.

Shaw said ViaWest will continue to operate from its Denver headquarters as a stand-alone subsidiary.

SJR is currently trading at $24.43, down $0.80 or 3.17%, on the NYSE.