Shaw to buy one of Calgary's largest fibre-optic networks
Deal is worth about $225-million
Shaw Communications Inc. announced Monday it will buy one of Calgary's largest internet, cable and phone networks from ENMAX Corporation.
The deal, worth roughly $225-million, will see Shaw take control of ENMAX's high-speed data communications subsidiary, Envision.
"The combination of Envision and Shaw Business will create a very competitive value proposition for Calgary's business customers looking for leading connectivity, integrated services and effective and responsive service," said Brad Shaw, CEO of Shaw.
"This transaction catapults our growth in the competitive Calgary business marketplace and demonstrates our resolve to grow this segment of our business."
The purchase is expected to be completed quickly because it will be funded with cash.
The deal will expand Shaw's business service offerings. It will also give Envision's parent company ENMAX further opportunities to expand its electricity business, says ENMAX president and CEO Gianna Manes.
Calgary's Mayor Naheed Nenshi says the money will help balance the budget sheet at the city-owned utility company.
"ENMAX has been focusing on their core business of providing electricity more and certainly if there's an opportunity to sell an asset at a good price and strengthen the balance sheet and focus on the core business, those are all good business reasons to make a move like this," Nenshi says.
Envision specializes in providing large bandwidth solutions to businesses and operates one of Calgary's largest fibre-optic communications networks.