Primus Telecom buys Globility Communications to expand Canadian presence

Primus Telecommunications Group, Inc. (NYSE: PTGI), a provider of communications services in the U.S. and Canada, says it has acquired the 54.4% of Canadian service provider Globility Communications Corp. that it did not already own, giving PTGI complete ownership of the company. Globility Communications is a registered Canadian competitive local exchange carrier that provides DSL, Ethernet, and local calling services and facilities in most of Canada’s major urban markets.

A recent change to Canada's Telecommunications Act that lifted limits on how much foreign companies could invest in domestic carriers paved the way for the deal, according to PTGI. In turn, the transaction will provide the funding necessary for Globility to expand its infrastructure.

"The recent changes to the legislation have made this acquisition possible, giving Globility much greater latitude to expand its telecom infrastructure across Canada, including the construction of high capacity, state-of-the-art metro fiber," says Peter D. Aquino, president and CEO of PTGI. "This will enable PTGI with its Globility brand to launch its owned fiber transport initiative, commencing construction of a central business district ring in Ottawa immediately."

PTGI says it has obtained permits for the first fiber infrastructure build in Ottawa and construction has begun. This first phase is expected to be completed by the end of Q3 2012, and will target medium-to-large-enterprise customers.

"With this acquisition, Globility will continue to foster greater competition, investment and purchasing choice to the Canadian market," says Andrew Day, CEO of Primus North America. "This will enable Primus Canada, through Globility, to grow its footprint for on-net local, DSL, and Ethernet services and to pursue expansion projects into the enterprise and government sectors that require low-latency, high-bandwidth routes on an all-fiber network."