Videotron expands business services portfolio with Fibrenoire acquisition

Canadian communications services provider Videotron, a wholly owned subsidiary of Quebecor Media Inc., says it will garner additional fiber-optic network services for its portfolio via the acquisition of Montreal-based Fibrenoire. Videotron will pay CAN$125 million for its new dark fiber and connectivity assets.

Fibrenoire, which will operate as an independent subsidiary, serves more than 1,000 customers in the Montréal, Québec City, Ottawa, and Toronto areas. It leverages a fiber-optic network of more than 4,500 km (see "Fibrenoire expands fiber-optic network with Montreal acquisitions" and "FirstLight Fiber teams up with Fibrenoire to connect U.S. and Canada").

The three founders and part owners of Fibrenoire, Benjamin Desmarais (president), Rémi Fournier (vice-president, sales and engineering), and Jean-François Lévesque (CTO), will remain with the company in their current roles. Novacap TMT, a buyout fund that specializes in tech, media, and telecom, was the majority owner and has sold all of its shares to Videotron as part of the deal.

"Like other recent acquisitions by Quebecor and its subsidiaries, such as Mel's Studios and Postproduction (formerly Global Vision), the addition of Fibrenoire will increase our presence in growing market segments and further diversify our revenue streams," said Pierre Dion, president and CEO of Quebecor. "Videotron Business Solutions is thereby continuing its development while ensuring that the assets and expertise of a fast-growing company remain in Québec hands."

Videotron Business Solutions offers Internet access services, network connectivity, business and mobile telephone services, and data hosting. It serves more than 125,000 businesses via a combination of fiber-optic, coaxial cable, and LTE networks.

"Our connection with Videotron will give us access to financial resources, technological depth, and a fiber-optic network of more than 30,000 km available across Québec," said Fibrenoire's Desmarais. "Those assets will enable us to better serve business customers. The deal is a win-win that combines our strengths and gives us the means to achieve our ambitions."

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.