Accelero Capital Holdings S.à.r.l. Group says it has signed a binding agreement with Manitoba Telecom Services Inc. (TSX: MBT) to acquire the Allstream business in a transaction that values Allstream at CAN$520 million, subject to certain customary adjustments, including assumed debt obligations and normalized working capital, as well as certain pension-related obligations. The transaction is expected to close in the second half of 2013, subject to regulatory approvals.
Allstream is an enterprise-focused communications provider in Canada. The company has approximately 30,000 route km of fiber-optic network across Canada, serving more than 50,000 businesses. Allstream is headquartered in Toronto, Canada, and employs over 2000 people.
Accelero is an investment and management group focused on telecommunication, digital media, and technology. Naguib Sawiris, Accelero's non-executive chairman and co-founder, is a telecom entrepreneur who has overseen more than CAN$1 billion of investment in the Canadian telecommunications market, contributing to the emergence of independent wireless competition in Canada, according to the press statement.
Under Accelero's ownership, Allstream expects to strengthen its position as a leading independent Canadian telecommunications provider to the enterprise market. Accelero says it will work with Allstream's senior management team to accelerate the company's ambitions by providing access to new capital, talent, and opportunities. This plan includes a commitment to significant ongoing investment in Allstream as part of its vision to build on its momentum in the Canadian telecommunications market.
"This investment reflects Accelero's long-term commitment to the Canadian telecommunications market, and our belief in the opportunity that exists to provide capital to enhance the competitive landscape in Canada,” Sawiris commented. “Allstream is the leading competitor to the incumbents in the Canadian enterprise market, and a fast-growing player in the IP space with an advanced coast-to-coast fiber network."
Commenting on the acquisition, Dean Prevost, president of Allstream, said, "I am confident that with Accelero as a strategic shareholder, and with the benefits of being a totally focused and privately held company, Allstream can build on this momentum for the benefit of our customers, employees and the competitiveness of the Canadian telecom sector."
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