(Reuters) - Canada’s Cogeco Communications Inc said on Wednesday it would sell its cloud services unit, Cogeco Peer 1, to investment firm Digital Colony in a deal valued at C$720 million ($548.74 million).
Montreal-based Cogeco said the move will allow it to focus on its broadband services business, stating that the data center and connectivity markets had grown “significantly” in the last few years.
As part of the deal, Cogeco will retain fiber capacity in Toronto and Montreal, the company said in a statement.
Cogeco plans to use a large portion of the proceeds to repay debt and repurchase certain subordinate voting shares.
The company expects the deal to close in the third fiscal quarter of 2019.
Reporting by Debroop Roy in Bengaluru; Editing by Shailesh Kuber