Rogers Communication Inc.
), one of the leading telecom carriers of Canada, has acquired
BLACKIRON Data from Primus Telecommunications Group for a cash
consideration of $200 million. The acquisition will allow Rogers
to expand its reach within the enterprise segment spread across
BLACKIRON Data is an innovator in data centre and cloud
computing services and has approximately 4,000 customers.
BLACKIRON offers a wide range of IT infrastructure solutions
including Customer Relationship Management (CRM) and works
closely with clients to deliver value to their business.
Acquisition of BLACKIRON will allow Rogers Business Solutions
(RBS) to strengthen its capacity and coverage across Canada as
almost 80% of all Canadian businesses are located within 200 km
of a BLACKIRON Data centre.
Notably, BLACKIRON owns and operates 8 data centres across
five important cities of Canada and has recently opened a
contemporary data centre in Markham, Ontario. The data centre has
expanded its current operations by 45%. This strengthens RBS's
position in Ontario, where it already owns two data centres and
has partnerships with multiple cloud vendors.
Combining Rogers' fibre-based network with BLACKIRON's
advanced range of data centres will allow the Canadian telecom
company to become a turnkey IT infrastructure solution provider
for enterprise clients. BLACKIRON, which has 132 skilled
professionals, reported an EBITDA margin of 38.6% on annual
revenue of $33.7 million at the end of 2012.
Companies providing cloud computing service continue to
flourish as virtualization has become essential for business
enterprises to reduce costs and for exploring the markets
worldwide. Instead of installing their own virtualization and
data centre set up, the corporate bodies are now sharing the
cloud computing platform of dedicated providers like
Citrix Systems Inc.
) that allows them to fulfil their data storage needs.
According to research firm Gartner, the cloud computing
service market is expected to reach $131 billion by 2013
representing an 18.5% annualized growth. Acquiring BLACKIRON will
allow Rogers to capture a share of this growth momentum in cloud
We believe that integrating BLACKIRON with RBS's network will
facilitate the latter to serve a wider customer base and
strengthen its position in the Canadian B2B (business to
Rogers currently carries a Zacks Rank #2 (Buy).
CITRIX SYS INC (CTXS): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
ROGERS COMM CLB (RCI): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis
To read this article on Zacks.com click here.