Rogers to Expand Data Centre Capabilities with Acquisitions of Pivot Data Centres and Granite Networks

TORONTO, Sept. 23, 2013 /CNW/ - Rogers Communications announced today that it is acquiring Pivot Data Centres for cash consideration of $155 million, and Granite Networks for a cash consideration of $6.25 million. These two acquisitions, combined with the acquisition of BLACKIRON Data earlier this year, position Rogers Business Solutions (RBS) as a leader in data centre and hosting services. Together, these two businesses currently generate annualized revenues of approximately $30 million. Both Pivot Data Centres and Granite Networks provide Rogers Business Solutions with unique opportunities to acquire established data centre businesses with significant expansion capacity in prime markets for these services.

"The addition of two high quality and growing data centre operations will enable Rogers Business Solutions to expand the availability of its reliable, and leading-edge data services," said AJ Byers, President, BLACKIRON Data. "Both organizations will enhance Rogers Business Solutions BLACKIRON Data offering as customers in key markets will now have access to expanded data capacity, managed and cloud service offerings."

Data centres and associated services provided by Pivot Data Centres and Granite Networks will bring a high growth and complementary business to Rogers Business Solutions. With these acquisitions, BLACKIRON Data, part of Rogers Business Solutions, will own and operate data centres in Ottawa, Toronto, Edmonton and Calgary that will meet Uptime Institute's Tier III standards.

Pivot Data Centres is a leading independent colocation data centre company in Western Canada that operates three colocation facilities in Calgary and Edmonton, with capacity of more than 130,000 square feet. In the coming months, Pivot Data Centres will open two additional state-of-the-art colocation data centres with over 110,000 square feet, expanding capacity by approximately 85 per cent. Today, over 100 enterprise customers and government agencies rely on Pivot's tailored and flexible data centre services.  Definitive agreements for the Pivot Data Centres acquisition have been executed and closing is expected during October 2013, subject to customary closing conditions.

Based in Ottawa, Ontario, Granite Networks provides flexible collocation, managed services and cloud hosting services to business and government clients in Eastern Ontario and Western Quebec. The acquisition of Granite Networks has been completed. 

Earlier this year, Rogers announced the acquisition of BLACKIRON Data to expand its data centre and cloud-based business solutions. As a division of Rogers Business Solutions (RBS), BLACKIRON is a pure-play provider of data centre, cloud computing and managed services in Canada. 

Rogers Business Solutions (RBS), a division of Rogers Communications, provides Canadian enterprises and partners with network connectivity using its fibre, cable and wireless assets to support a range of leading-edge voice,  data and networking services solution. Rogers Business Solutions owns and operates a transcontinental network with a 100 percent digital fibre optic backbone and strategic interconnect points to the United States and overseas for seamless, cross-border and international coverage. With an extensive customer base including commercial, government and  financial enterprises, RBS offers scalable business communications services backed by a team of industry leading technical experts.  To learn more about Rogers Business Solutions, visit www.rogersbusinesssolutions.com.

About Rogers

Rogers Communications is a diversified Canadian communications and media company. We are Canada's largest provider of wireless voice and data communications services and one of Canada's leading providers of cable television, high-speed Internet and telephony. Through Rogers Media we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, sports entertainment, and digital media. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

Caution Regarding Forward-Looking Statements, Risks and Assumptions

This release includes "forward-looking information" within the meaning of applicable securities laws and assumptions concerning the closing of an acquisition as detailed above.  We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change, including but not limited to various regulatory approvals. Many of these factors are beyond our control and current expectation or knowledge. Should one or more of these risks, uncertainties or other factors materialize, our objectives, strategies or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.

SOURCE: Rogers Communications Inc.

Media
Allison Fitton, Rogers Communications
416-935-8860
[email protected]

Investment Community
Bruce M. Mann, Rogers Communications
416.935.3532
[email protected]