Cogeco to pay $200M for Toronto Hydro Telecom
Cogeco Cable Inc plans to acquire all the shares of cityowned Toronto Hydro Telecom Inc for $200 million, the cable company said yesterday. The sale is expected to close on July 31.
Toronto Hydro Telecom leases fibre-optic cable capacity and offers a variety of services to business customers and organizations including data, ethernet, voice over Internet protocol, high-speed Internet access, dark fibre, data storage and data security.
Cogeco, which operates in Ontario, Quebec and Portugal, said the acquisition in the populous greater Toronto area ”brings interesting growth opportunities.”
Toronto Hydro Telecom’s network, workforce and business market potential “should complement our existing business telecommunications activities in Ontario and allow future growth for Cogeco Cable in this line of business,” Louis Au- det, the company’s president and chief executive, said in a statement.
The telecom unit is part of Toronto Hydro, which runs the municipally owned power distribution utility.
“This sale enhances our ability to invest in the renewal of our distribution system,” said David O’Brien, president and chief executive of Toronto Hydro.