Manitoba Telecom Services Inc. (MTS) and U.S.-based Zayo Group Holdings Inc. announced today that the sale of Allstream Inc. is close to completion.

It was reported this past November that Winnipeg-based MTS would offload its Allstream IP communications business to the Boulder, Colo.-based communications infrastructure group for $465 million in cash, marking the first time a foreign firm would completely own a Canadian telecom service since the government relaxed foreign ownership rules in 2012.

Zayo provides communications infrastructure services, including fibre and bandwidth connectivity, colocation and cloud services to business customers; the company has stated that Allstream’s fibre network — more than 20,000 kilometers of fibre connecting all major Canadian markets and 10 U.S. network access points — represents one of the main reasons for the acquisition.

Both MTS and Zayo are currently in the process of “closing the transaction expeditiously,” the companies said Monday.

Would you recommend this article?

0
0
Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication. Click this link to send me a note →

Jim Love, Chief Content Officer, IT World Canada