TORONTO (Reuters) - Canada's biggest telecommunications company, BCE Inc
Toronto-based Q9 is one of Canada's largest outsourced data centre operators and will be run as an independent company under current management after the deal closes, BCE said.
Under the terms of the deal, BCE will pay C$180 million and Ontario Teachers' Pension Plan, Equity Partners LLC and Madison Dearborn Partners LLC will contribute C$420 million of the equity funding.
Newly-committed debt financing from Q9 will also help fund the purchase, which is expected to close before the end of 2012.
BCE has spent heavily to acquire assets, including CTV, Canada's largest private broadcaster. It is in the process of buying Astral Media Inc
Q9 has 11 data centers and offers co-location, bandwidth, dedicated servers, firewalls, load balancing, virtual private networking (VPN) and back-up/restore capabilities to protect and manage customer data remotely.
Bank of Montreal
The news was first reported by the Globe and Mail newspaper, which said BCE's rivals Rogers Communications Inc
($1 = 1.0410 Canadian dollars)
(Reporting by Alastair Sharp; Editing by Vicki Allen)