MONTREAL — Cogeco Communications Inc. has signed a deal to sell Cogeco Peer 1 Inc., its cloud services company, to investment firm Digital Colony for $720 million.
The company says it plans to use the proceeds from the sale to repay debt and repurchase shares.
Shares in Cogeco were up about seven per cent or $5.31 at $80.36 in trading on the Toronto Stock Exchange following the announcement.
Cogeco acquired Peer 1 Hosting in 2013.
The deal is subject to customary closing conditions, including certain regulatory approvals, and is expected to close in the third quarter.
Cogeco Peer 1 is expected to remain based in Toronto and adopt a new brand.
Companies in this story: (TSX:CCA)
The Canadian Press
