Primus Telecommunications Group (NYSE:PTGI, news, filings) made another M&A move this morning, but in the other direction this time. They announced the acquisition of Globility Communications, a Canadian CLEC that they already held a big stake in. But perhaps more importantly, they announced new metro fiber buildout plans to go with it.
PTGI is now building out its own metro fiber network in Ottawa, with the permits in hand and construction already underway. The initial buildout will be ready by the end of Q3, and they’ll be aiming at the mid-sized to large enterprise market.
The company says that the recent partial deregulation of the Canadian telecommunications sector gave it the opportunity to make this move, allowing foreign money to invest in in Canadian metro fiber.
Earlier this year, PTGi sold off its Australian business and metro fiber assets as part of its overall review of strategic alternatives. Most recently they separated their Canadian data center business from the rest of the company, apparently in preparation for further sales. It’s interesting that in that context they uncovered an opportunity for an organic buildout.
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Categories: Mergers and Acquisitions · Metro fiber
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