Telecommunications Acquisitions in Canada

OptConnect, a managed wireless connectivity solutions provider, acquired Canada-based DPL Wireless, a provider of cellular connectivity and IoT device-intelligence solutions. The combination adds DPL’s Hercules AI device intelligence/analytics to OptConnect’s global managed cellular IoT connectivity and ConnectIQ platform, targeting higher uptime and reliability for ATM connectivity and other IoT deployments. DPL will operate as “DPL Wireless, a division of OptConnect,” and will maintain its headquarters in Moncton, New Brunswick; financial terms were not disclosed.

Qvantel Oy completed its acquisition of Optiva Inc. via a statutory plan of arrangement under the Canada Business Corporations Act. Qvantel acquired all outstanding Optiva common shares for cash consideration of $0.25 per share, and Optiva is expected to be delisted from the Toronto Stock Exchange and dissolved as a reporting issuer. As part of the transaction, Optiva’s senior secured PIK notes were cancelled and noteholders received a mix of Qvantel voting shares, new senior secured notes, and warrants.

Cologix, Inc. acquired DataHiveOne, DataHive’s flagship carrier-neutral data center in downtown Calgary, along with most of DataHive’s colocation and interconnection assets. The deal marks Cologix’s entry into the Calgary market and expands its Canadian interconnection and hyperscale edge data center footprint, strengthening connectivity options for carriers, cloud providers, and enterprises.

Funds managed by Northleaf Capital Partners made an initial commitment of C$100 million to partner with Shared Tower to accelerate the build-out of carrier-neutral communications infrastructure in Canada. Shared Tower, headquartered in Oakville, Ontario, develops and owns shared communications infrastructure under long-term contracts.

ETL Systems has acquired IRT Technologies, a Canadian designer and manufacturer of satellite communications products. The deal expands ETL Systems’ presence in North America and strengthens its satellite communications portfolio, including GaN/GaAs-powered amplifiers and redundancy solutions. IRT’s Canadian facility will continue operating under the ETL Systems umbrella to ensure continuity for customers.

Aliter Holding, a.s., parent of Aliter Technologies, made a significant investment to acquire a controlling interest in Canadian communications solutions provider 3C Information Solutions Incorporated (3CIS), including its US subsidiary 3C Information Solutions Inc. The deal is intended to strengthen Aliter Technologies’ presence in Canada and the United States and expand its portfolio of products and services.

E.C.I. Networks announced it has acquired NoviFlow, a pioneer in SRv6 and service chaining technology. The deal expands E.C.I. Networks’ open networking portfolio with high-performance programmable networking and cybersecurity capabilities aimed at data center and AI-driven networking demands.

Main Street Capital Corporation completed a $41.4 million new portfolio investment to facilitate the minority recapitalization of Connect Telecommunications Solutions Inc., a value-added distributor of fiber management solutions serving the Canadian telecommunications industry. The investment was made alongside a co-investor and in partnership with the company’s founders, and included a mix of first-lien senior secured term debt and direct equity.

TELUS Corporation acquired 2,593,631 subordinate voting shares of TELUS International (Cda) Inc. (TELUS Digital) through market purchases on the Toronto Stock Exchange for approximately C$12.7 million. Following the purchases, TELUS increased its holdings to about 5.99% of TELUS Digital’s outstanding subordinate voting shares and approximately 57.7% of total outstanding shares. TELUS stated the purchases are for investment purposes and are not part of a plan to privatize TELUS Digital.

Network Innovations, a global technology integrator of critical communications services, acquired Infosat Communications, a satellite services provider focused on remote business operations. The transaction was completed with Infosat’s parent company, Telesat, and is closing in phases subject to regulatory approvals, with the first closing for most Infosat assets occurring on September 1, 2024.

PomeGran Inc. announced the acquisition of ROCK Networks Inc., expanding its fibre-centric rural broadband footprint and telecom systems integration capabilities across Canada. ROCK Networks will operate as a wholly-owned subsidiary of PomeGran, and ROCK founder Joe Hickey has been appointed President of PomeGran. The deal is positioned to accelerate connectivity projects in underserved and Indigenous communities and strengthen service offerings including fibre, fixed wireless, broadband, satellite, and two-way radio solutions.

Pavlov Media announced it has acquired NetExperience, the developer of the Telecom Infra Project (TIP) OpenWiFi Cloud Controller. NetExperience will operate as an independent division of Pavlov Media, remaining based in Canada and continuing to serve its existing customer base while supporting global OpenWiFi deployments.

DIF Capital Partners closed an investment in Canadian internet service provider RFNOW Inc. through its CIF III fund to support further growth of RFNOW’s telecommunications network. RFNOW operates a 1,500 km fiber optic network and tower portfolio providing fiber, fixed wireless internet, and phone services across Manitoba and Saskatchewan, Canada.

Motorola Solutions (NYSE: MSI) has acquired Futurecom Systems Group, an Ontario, Canada-based provider of radio coverage extension solutions for public safety agencies. Futurecom designs and manufactures in-vehicle, fixed, and portable RF repeaters and extenders that help extend and enhance land mobile radio coverage, and has collaborated with Motorola Solutions for over 30 years. Financial terms were not disclosed.

Semtech Corporation announced a definitive agreement to acquire all outstanding shares of Sierra Wireless, Inc. in an all-cash transaction valued at approximately US$1.2 billion (US$31 per share). The combination is intended to create an expanded chip-to-Cloud IoT connectivity platform by bringing together Semtech’s LoRa technology with Sierra Wireless’ cellular modules, gateways, managed connectivity, and cloud services. The transaction is subject to shareholder, regulatory, and court approvals and is expected to close in Semtech’s fiscal year 2023.

Ripley Tools acquired Canadian technology company Multiwave Sensors, headquartered in Bolton, Ontario, to expand its portfolio of tools and test equipment for wireless infrastructure installation. The deal strengthens Ripley Tools’ antenna alignment and geolocation capabilities through Multiwave’s GPS/GNSS-based Smart Aligner technology and supports broader integrated solutions for antenna installation and related infrastructure work.

Aviat Networks, Inc. entered into an arrangement agreement to acquire all outstanding shares of Redline Communications Group, Inc. in an all-cash transaction valued at approximately CAD$16.2 million (about USD$12.9 million). Aviat will pay CAD$0.90 per Redline common share and expects to fund the acquisition with cash on hand, subject to customary closing conditions, shareholder approval, and court/regulatory approvals.

Bell has acquired EBOX, a Longueuil, Québec-based Internet, telephone, and television service provider. EBOX will continue operating under the EBOX brand and maintain its existing operations while benefiting from Bell’s scale and network resources to support growth in Québec and parts of Ontario.

Network Wireless Solutions, LLC (NWS), a Grain Management portfolio company, acquired Gap Wireless, a Canada-based provider of wireless infrastructure and test & measurement products and services. The deal expands NWS’s presence in Canada and strengthens its scale across North America, with Gap Wireless’s management team continuing to partner through integration.

Convergint, a global service-based systems integrator, acquired Dramis Communications Solutions Ltd., a Canadian telecommunications and networking reseller providing security, VOIP, and UCaaS solutions. The deal expands Convergint’s direct service coverage and delivery capabilities across every province in Canada, adding Dramis’ Atlantic Canada expertise in wired/wireless networks, telephony, nurse call, audio-visual, and electronic security solutions.

Beanfield Metroconnect announced it has acquired FibreStream Inc., an independent Canadian internet service provider. The deal supports Beanfield’s strategy to expand its residential fibre network and extend service availability to more customers across major Canadian markets.

IBI Group Inc. has completed the purchase of the assets of Telenium Inc., including its intellectual property and technology assets. Manitoba-based Telenium provides telecommunications-integrated software, best known for its 511 advanced traveller information solution. The acquisition strengthens IBI’s Travel-IQ product, expands its SaaS portfolio, and increases recurring revenue through Telenium’s client base and team.

Santec Corporation announced the acquisition of JGR Optics Inc. and OptoTest Corp., both providers of fiber optic test solutions for cable assemblies and components. JGR Optics and OptoTest will become fully owned subsidiaries of Santec while continuing to operate under their existing brands, expanding Santec’s footprint in the fiber testing market.

Funds managed by Lee Equity Partners and Twin Point Capital acquired a controlling interest in Alliance Corporation, a value-added distributor of wireless communications technology serving telecom and broadband infrastructure customers across North America. Ironbridge Equity Partners, the prior majority equity investor, exited its investment in full as part of the transaction, with Alliance’s management team retaining meaningful equity and continuing to lead the business. Financial terms were not disclosed.

Xplornet Communications Inc. announced it has acquired Swift High Speed, a rural broadband provider headquartered in Steinbach, Manitoba serving Southeast Manitoba. Xplornet acquired Swift High Speed’s customers and operations, including its fibre optic network and broadcast tower locations, to support Xplornet’s fibre-to-the-home and 5G rollout in the province. Swift High Speed will split off employees and equipment to form a new fibre installation business, Swift Underground, which Xplornet has retained to operate the existing network and help build new FTTH infrastructure in the region.

Wesbell Technologies and Wesbell Investment Recovery (Wesbell) closed a significant equity investment led by FirePower Equity, with participation from Crédit Mutuel Equity and Trilogy Capital. The new sponsorship is intended to accelerate Wesbell’s growth, expand its North American footprint, and support its build-to-own cell tower infrastructure strategy and future strategic acquisitions.

Vertu Capital led a $60 million minority recapitalization investment in Dejero Labs Inc., a Waterloo, Ontario-based provider of resilient connectivity solutions for critical communications. Ubicom Ventures partnered alongside Vertu Capital (in partnership with Dejero management) to complete the transaction, which serves as the first investment from Vertu Partners Fund I.

Videotron, a wholly owned subsidiary of Quebecor Media Inc., acquired Cablovision Warwick Inc. and its telecommunications network in the Centre-du-Québec region. Videotron plans to invest in and upgrade the acquired infrastructure so residents and businesses in Warwick, Kingsey Falls, and Saint-Félix-de-Kingsey can access Videotron’s full product line, including its Helix platform.

Rogers Communications Inc. entered into an agreement to acquire all issued and outstanding Class A and Class B shares of Shaw Communications Inc. for $40.50 per share, valuing the transaction at approximately $26 billion including Shaw’s debt. The Shaw Family Living Trust agreed to support the deal, receiving a portion of its consideration in Rogers Class B shares, and the transaction is expected to close in the first half of 2022 subject to shareholder, court, and regulatory approvals.

Alianza, Inc. completed its acquisition of CounterPath Corporation, a Vancouver-based provider of softphones, cloud meetings, and mobile unified communications (UCaaS/UCC) solutions. The transaction was structured as a merger in which CounterPath became a wholly owned subsidiary of Alianza, and CounterPath shareholders received US$3.49 per share in cash (approximately US$25.6 million total consideration), resulting in CounterPath becoming privately held and delisting from NASDAQ/TSX.

Kairos Capital Management LLP has acquired Comprod Inc., a Montréal-based leader in radio telecommunications products and solutions. The investment is intended to accelerate Comprod’s growth and support increased R&D to expand its cutting-edge antenna, RF filter, and in-building DAS offerings for customers across public safety, government, defense, telecommunications, and transportation.

NOVA Infrastructure and Quintana Infrastructure & Development LLC (QID) completed an investment in telMAX Inc., with NOVA acquiring a majority interest in the fiber telecommunications infrastructure operator. The investment will fund telMAX’s buildout of a 100% fiber-to-the-home network across targeted suburban markets in the Greater Toronto Area.

Xplornet Communications Inc. announced it has acquired Ocdotus Inc., a fibre-based service provider in southern Ontario operating as Metro Loop. The deal includes all of Metro Loop’s customers and operations, and Metro Loop’s employee team (including its President) will join Xplornet as it expands fibre deployments across Ontario and Canada.

Telesat Canada entered into an agreement with Loral Space & Communications Inc. and Public Sector Pension Investment Board (PSP Investments) to reorganize under a new Canadian-incorporated parent, Telesat Corporation. Upon closing, both Telesat Canada and Loral will become subsidiaries of Telesat Corporation, which will be publicly listed on the Nasdaq Global Select Market and headquartered in Ottawa, Canada.

Cogeco Communications Inc., through its Canadian subsidiary Cogeco Connexion, entered into a definitive agreement to purchase DERYtelecom for $405 million following completion of due diligence. DERYtelecom, a Quebec-based cable provider offering internet, television and telephony services, is expected to expand Cogeco Connexion’s footprint in adjacent Quebec regions and generate estimated run-rate synergies of approximately $3 million.

Beanfield Metroconnect announced the acquisition of Epik Networks, a Toronto-based telecommunications provider serving Canadian customers for more than 15 years. Through the deal, Beanfield adds Epik Networks’ approximately 200 Canadian business clients across Toronto, Montreal, and Vancouver, expanding its business communications and cloud solutions offerings.

Xplornet Communications Inc. closed the acquisition of Corridor Communications Inc., operator of CCI Wireless, a Calgary-based provider of broadband solutions for rural homes in Alberta and enterprise clients across western Canada. Xplornet plans to build on CCI Wireless operations across Alberta, Manitoba, and Saskatchewan, retaining the employee team and expanding its hybrid fibre wireless network footprint in western Canada.

Leonovus Inc. signed a letter of intent to acquire all issued and outstanding shares of PureColo Inc., a Canadian colocation data centre company headquartered in Ottawa, Ontario. The purchase price is CAD $3.0 million plus assumption of approximately CAD $0.5 million of debt, with consideration split between cash, units, and contingent equity tied to revenue milestones. Closing is subject to due diligence, TSXV approval, and Leonovus completing a concurrent financing to raise at least CAD $5.0 million.

Beanfield Technologies Inc. announced the acquisition of Openface Inc., expanding Beanfield’s fiber telecom footprint into Montreal. The transaction was privately funded through an equity commitment from Digital Colony Partners, and financial terms were not disclosed. Openface’s employees will join Beanfield while Openface maintains its Montreal location as part of the transition.

Digital Colony Partners, the digital infrastructure investment platform of Colony Capital, acquired Beanfield Technologies Inc., a Canadian independent bandwidth infrastructure provider. The deal expands Digital Colony’s metro fiber footprint in Toronto and Montreal to serve enterprise, carrier/MNO, and hyperscale data center customers; financial terms were not disclosed.