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Canadian telecommunications firm Shaw Communications announced it has agreed to acquire ViaWest for $1.2 billion in cash and assumed debts. Denver-based ViaWest runs data centers, cloud technology and managed IT solutions mainly in the United States and employs over 350 people.
“This is an excellent strategic development for ViaWest, our employees and our customers,” said Nancy Phillips, ViaWest's CEO, President and co-founder, in a statement. “With Shaw’s long-term commitment, we will have the stability and shared entrepreneurial culture to enter into a new phase of growth and meet the expanding technology needs of mid-market enterprises, while maintaining our commitment to exceptional customer service.”
Shaw Communications mainly makes its money in Canada, providing television and Internet services and has a broadcast network called Global Television Network. Its acquisition of ViaWest will give it a valuable new foothold into the United States and a source of revenue in a new sector.
ViaWest has 27 data centers in eight Western U.S. markets, an asset that will especially be beneficial to Shaw as corporate computing power increasingly moves from in-house operations to the cloud. ViaWest’s strong growth rate is also attractive. From 2010 to 2013 the company grew at a 15 percent compounded annual growth rate, and maintained that stable revenue through long-term contracts and consistent customer retention.
In April 2013 Shaw Communications purchased Enmax, the fiber-optics division of Envision, for $225 million. Enmax had a large fiber-optics network and was expert in providing large-bandwidth solutions to businesses. Shaw’s acquisition of ViaWest is part of the company’s increasing bet on enterprise telecommunications and computing.
“We identified the data center sector as an attractive opportunity adjacent to our core business and with the acquisition of ViaWest, Shaw gains significant capabilities, scale and immediate expertise in the growing marketplace for enterprise data services,” said Brad Shaw, CEO of Shaw Communications.
“With significant growth in IP traffic, bandwidth intensive applications and IT outsourcing, demand for ViaWest’s services is growing rapidly. This acquisition enables Shaw to leverage this best-in-class expertise and positions us at the forefront of this significant market opportunity,” said Shaw.
ViaWest, which has over 1,300 customers across seven states, will continue to operate out of Denver and will still be led by CEO Nancy Phillips. The company will operate as a separate, yet wholly-owned subsidiary of Shaw Communications.
