This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shaw Communications Expands in U.S. With $1.2B ViaWest Deal

NEW YORK (The Dea) -- Canadian media group Shaw Communications (SJR - Get Report)SJR is expanding into the U.S. data center market with the $1.2 billion purchase of private equity-backed ViaWest Inc.

Chief executive Brad Shaw told investors during a Thursday conference call that following the purchase, Shaw would be "immediately positioned at the forefront" of the market for outsourced cloud computing and outsourced server management among mid-market companies.

The deal provides a benchmark for privately held data centers, following the sale of Peak 10 Inc. to GI Partners LP earlier this year.

Shaw is paying Oak Hill Capital Partners 13 times annualized Ebitda for ViaWest, which operates 27 data centers in Denver, Dallas, Austin, Salt Lake City, Las Vegas, Portland, Minneapolis and Phoenix. The price includes $830 million in cash and $370 million in assumed debt.

ViaWest co-founder and CEO Nancy Phillips said that the data center market is "very fragmented." The company might look to expand in the Eastern US within the next 18 months.

"That's an area we are taking a look at very aggressively," Phillips said.

The acquisition follows Shaw's $220 million purchase of business telecom Enmax Envision Inc. last year. Combined, Shaw said its business telecom unit and ViaWest will produce $550 million in revenues and $280 million in Ebitda.

Oak Hill bought the Denver data center operator in 2010 from Trinity Equity Investors, Goldman, Sachs & Co. and Quilvest SA. The Oak Hill executive who led the purchase, Robert Morse, left the firm recently to form Strattam Capital LLC.

The sale of Charlotte, N.C., data center operator Peak 10 to GI Partners earlier this year drew attention to ViaWest and to Latisys Corp., which has backing from Great Hill Partners LLC and Catalyst Investors LP.

Peak 10 operates data centers in markets such as Atlanta, Cincinnati, Nashville and Tampa, and would be an East Coast-complement to ViaWest's holdings. Latisys, which tested the market last year, has a broader portfolio, with data centers in markets from Irvine, Calif., to Englewood, Colo., and Ashburn, Va.

TD Securities Inc. is Shaw's financial adviser on the ViaWest purchase. The buyer retained Davies Ward Phillips & Vineberg LLP and Simpson Thacher & Bartlett LLP lawyers including Atif Azher, Tristan Brown and Katharine Moir.

RBC Capital Markets LLC advised ViaWest, which received counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SJR $18.12 -1.00%
AAPL $92.73 -0.55%
FB $118.16 0.30%
GOOG $705.16 0.53%
TSLA $210.62 -0.43%


Chart of I:DJI
DOW 17,601.85 -58.86 -0.33%
S&P 500 2,041.39 -9.24 -0.45%
NASDAQ 4,687.7910 -29.3030 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs