Tuesday June 13, 2017 0 comments
DENVER and CHARLOTTE, N.C. -- ViaWest, a wholly-owned subsidiary of Shaw Communications Inc., and North Carolina-based Peak 10 Inc., a portfolio company of GI Partners, today announced they have entered into a definitive agreement under which ViaWest will be acquired by Peak 10 for an all-cash consideration of $1.675 billion and the companies combining.
The companies said the transaction creates a leading provider of colocation, connectivity, cloud and managed solutions. GI Partners, a former investor in ViaWest, acquired Peak 10 in 2014 and will remain the majority shareholder of the combined company.
The move accelerates both companies' commitment to growth and reinforces their customer-first approach. The combined company's operations will span 20 domestic and international markets including Atlanta, Austin, Charlotte, Cincinnati, Dallas, Denver, Ft. Lauderdale, Jacksonville, Las Vegas, Louisville, Minneapolis, Nashville, Phoenix, Portland, Raleigh, Richmond, Salt Lake City, Tampa, Amsterdam and Calgary.
The increased scale and broad geographic coverage will enable the combined company to serve its customers across an enhanced platform of products and capabilities.
Chris Downie, Peak 10 CEO, will serve as CEO of the combined company and Nancy Phillips, ViaWest CEO, will become the executive chair of the board of the combined company.
Peak 10 and ViaWest's 4,400 customers will benefit from the expanded value proposition of the combined entity, including enhanced cloud and interconnection capabilities, highly redundant data centers, and back office and operational support systems automation, the companies said.
The combined company will serve its customers' IT infrastructure needs across multiple dimensions:
- Product portfolio: The combination diversifies and enhances the company's capability set, providing customers with broad choices across colocation, connectivity, private and public cloud utilities, as well as advanced managed solutions
- Innovation: Leveraging each company's investments in advanced hybrid IT solutions, the combination will scale resources to continue its commitment to extending product reach and functionality
- Operational footprint: The new company will feature expansive capacity across 20 major domestic and international markets
- Management: The company's combined best-in-class management team will drive continued strong execution across existing and new markets
"By joining forces, Peak 10 and ViaWest will create a leading hybrid IT infrastructure and solutions provider well-positioned to deliver significant benefits to our customers," said Downie.
"This transformative transaction will expand our scale and geographic reach, and we are excited to bring together two companies with cohesive operating philosophies and complementary strengths.
“Our goal is to deploy best practices across the combined company to provide exceptional solutions to our customer base, while driving best-in-class performance by taking advantage of new opportunities for growth."
"As we contemplated strategic partnerships, we quickly concluded that Peak 10 offered a complementary footprint, shared focus on the customer, and talented team,” said Phillips.
“I'm excited for our customers and employees because this combination will deliver an unparalleled customer experience and create dynamic growth opportunities."
"As an active investor in the IT infrastructure space for over 15 years, we are excited to bring these two growing companies together," said David Mace, a managing director at GI Partners.
"Peak 10 and ViaWest will be a powerful combination to support customers' expanding data needs in domestic and international markets. We support the combined company's commitment to service excellence and look forward to partnering with the leadership team to help drive the next phase of growth."
The transaction is anticipated to close in the third quarter of 2017, subject to customary closing conditions. DH Capital acted as financial advisor and Paul Hastings LLP acted as legal counsel to Peak 10 and GI Partners.