Shaw Communications To Buy ViaWest For Enterprise Value Of $1.2 Bln

(RTTNews) - Diversified Canadian communications company Shaw Communications Inc.(SJR, SJR.B.TO) agreed to acquire a 100% interest in ViaWest, Inc from Oak Hill Capital Partners and other shareholders for an enterprise value of US$1.2 billion, the companies said.

Based in Denver, ViaWest is one of the largest privately held and providers of data centre infrastructure, cloud technology and managed IT solutions in North America. ViaWest employs over 350 people and services more than 1,300 customers across seven states.

The current management team, led by Co-Founder, President & Chief Executive Officer Nancy Phillips, will continue to operate ViaWest from its Denver headquarters as a stand-alone wholly-owned subsidiary of Shaw, building upon its track record of profitable growth.

The acquisition is expected to close in September 2014 and is subject to U.S. regulatory approval. The purchase price of US$1.2 billion represents a multiple of approximately 13X adjusted EBITDA annualized for the three months ended June 30, 2014.

Shaw stated that the transaction will be funded using a combination of cash on hand and Shaw's existing credit facility and will have no material effect on Shaw's free cash flow. Considering Shaw's cash flow and the acquisition of ViaWest, Shaw's Board confirms its previously disclosed target dividend increase of 5% to 10% in fiscal 2015.

As per the terms of the agreement, majority investor Oak Hill, along with GI Partners and the Company's other current shareholders, will sell their interests in ViaWest to Shaw.