Bell, investor group to acquire Q9 Networks for C$1.1B

An investor group, comprising Ontario Teachers' Pension Plan, Providence Equity Partners and Madison Dearborn Partners LLC, and BCE Inc., or Bell, announced an agreement to acquire 100% of Canadian data center operator Q9 Networks Inc. for C$1.1B.Under the agreement, Teachers, Providence and Madison Dearborn will contribute 70%, or C$420M, of the equity funding and Bell will provide the remaining 30%, or C$180M. New debt financing by Q9, already committed, will also fund a portion of the acquisition. The transaction is expected to close before the end of 2012, subject to regulatory approval and customary closing conditions. Bell and its consortium partners have committed to settle the Reverse Break-Fee Proceedings initiated in 2008, with terms to be finalized in advance of closing of the transaction. The break fee settlement, which will consist of non-cash consideration, will be part of the overall transaction and will be conditional upon completion of the transaction.