Greatresponder.com on Dec 20, 2012: Cogeco the Canadian media and communications company acquires Peer 1 for C$526 million to enhance cloud computing and data hosting business in North America. It is the wedding of technology between east and west Canada for 2012. Cogeco was founded in Montreal (East Canada) in 1957 and Peer 1 web hosting from Vancouver (West Canada) was founded in 1999. The two giant companies are expected from this acquisition to open new horizon to small and medium size companies by add 19 data centers.
Cogeco the Montreal-based company, bought cable operator Atlantic Broadband for $1.36 billion earlier this year to gain a foothold in the larger U.S. market. Cogeco said in its annual report for 2012 that their data hosting business expected to rise 10 percent per year.
Cogeco offered C$3.85 for each Peer 1 share, which represents a premium of 30.5 percent to Peer 1 stock’s closing price on Thursday. The offer will be open for 35 days, and Cogeco Cable will receive a termination fee of C$18.5 million if the deal is not completed. Peer 1 shares closed at C$2.95 on the Toronto Stock Exchange on Thursday. Cogeco Cable’s shares, which have lost 13 percent of their value over the last six months, closed at C$40.97.
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