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Goodmans Deals & Cases

This section contains brief summaries of selected significant cases and transactions.  You'll also find representative lists  - by year - of major transactions and cases where Goodmans' involvement is a matter of public record or where inclusion in the list has been authorized by our clients.

Investors Group Acquires Q9 Networks

2012

Areas Acquisition Finance, Banking and Finance Law, Commercial Real Estate, Competition, Antitrust and Foreign Investment, Litigation, Private Equity, Tax

Summary

Goodmans represented BMO Capital Markets Corp. with respect to a portion of the acquisition financing in connection with the investor group’s acquisition of Q9 Networks (Q9).  An investor group comprising Ontario Teachers' Pension Plan (Teachers'), BCE Inc. (Bell), Providence Equity Partners (PEP) and Madison Dearborn Partners LLC (MDCP) announced the completion of its previously announced acquisition of Q9 Networks Inc. (Q9) for a purchase price of $1.1 billion. Of this amount, $430 million was contributed by Teachers', PEP and MDCP collectively, $185 million of the equity funding was provided by Bell and a portion of the acquisition price was funded by new debt financing.
 
Q9 is Canada's leading provider of outsourced data centre solutions such as hosting, co-location and cloud computing services, with headquarters in Toronto and 12 data centres in British Columbia, Alberta and Ontario.
 
Q9 will continue to operate independently under the continuing leadership of CEO Osama Arafat and President and COO Paul Sharpe.
 
Upon completion of the transaction, Bell, through its Bell Business Markets unit – which provides network connectivity, data hosting and other managed services to business clients across Canada – entered into a commercial arrangement with Q9 to enable the continued growth of their respective businesses and to drive shareholder value.
 
Concurrently with completion of the acquisition of Q9 and execution of the commercial arrangement, Bell and its partners in the investment transaction settled the $1.2 billion Reverse Break-Fee Proceedings initiated in 2008 following termination of Bell's proposed privatization.
 
In consideration of the settlement, Bell received certain non-cash benefits, such as increased equity ownership, and a path to full ownership with an option at a favourable valuation to acquire the partners' entire equity interest in Q9 in the future.