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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Bell did not buy Q9 Networks alone. In June 2012, BCE Inc. (Bell) and three investment partners agreed to acquire all of Q9 for C$1.1 billion; the investor group completed the transaction in October 2012. Bell’s stated aim was to pair Q9’s data-centre services with Bell’s network. BCE later acquired the Q9 equity it did not already own in 2016, a separate transaction.
What the 2012 deal involved
On June 2, 2012, the investor group announced an agreement to acquire 100% of Q9 Networks for C$1.1 billion, subject to regulatory approval and customary closing conditions. The amount was the reported purchase price for Q9, not Bell’s individual contribution.
The group comprised BCE Inc. (Bell), Ontario Teachers’ Pension Plan, Providence Equity Partners, and Madison Dearborn Partners. The transaction was completed in October 2012.
Who contributed equity, and what changed by closing?
The announcements reported different equity contributions at the proposal and completion stages. The sources reviewed do not explain the difference.
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| Announcement | Investment partners | Bell | Other financing detail |
|---|---|---|---|
| June 2, 2012 proposed deal | C$420 million from Ontario Teachers’ Pension Plan, Providence Equity Partners, and Madison Dearborn Partners | C$180 million | The announcement said committed Q9 debt financing would fund part of the acquisition. |
| October 17, 2012 completion | C$430 million from the three investment partners | C$185 million | The completion release reported these equity figures; it did not reconcile them with the June proposal. |
These figures describe reported equity contributions, not separate purchase prices. The C$1.1 billion purchase price should not be read as money Bell paid by itself.
What Q9 did at the time
At the October 2012 closing, Q9 was described as a provider of hosting, co-location, and cloud-computing services. The completion announcement said it operated 12 data centres in British Columbia, Alberta, and Ontario. Those are descriptions of Q9 at the time of the deal, not claims about its present-day footprint or operations.
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The parties said Q9 would remain a stand-alone entity under its existing executives after the acquisition.
Why Bell wanted Q9
Bell presented the acquisition as a way to expand its hosting and cloud-based business by combining Q9’s data-centre services with Bell’s broadband network. Tom Little, then president of Bell Business Markets, called Q9 an “ideal partner” for that strategy in Bell’s June 2012 announcement. That was Bell’s promotional rationale; the transaction announcements do not establish whether the expected benefits were later achieved or quantify their results.
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- Covers up to 1,000 sq. ft. with four external antennas for stable wireless connections and optimal coverage.
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How the 2012 purchase differs from the 2016 transaction
The 2012 acquisition was made by a four-party investor group. It should not be confused with BCE’s later acquisition of the Q9 equity it did not already own, which a BCE filing dates to October 3, 2016. The filing establishes that later ownership step; it does not make Bell the sole buyer in 2012.
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Sources
- Bell announcement of the proposed acquisition, June 2, 2012
- Investor-group completion announcement, October 17, 2012
- Completion announcement’s reported equity contributions, October 17, 2012
- BCE filing on its October 3, 2016 acquisition of the remaining Q9 equity
- Tom Little’s statement in Bell’s June 2, 2012 announcement
- Completion announcement’s description of Q9 and its operating plan
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