HALIFAX, Oct. 26 /CNW/ - Bell Aliant is announcing today that an agreement has been reached to sell xwave, in its entirety, to Bell.
"We believe the time and opportunity is right for this transaction and by divesting xwave now, Bell Aliant is able to further focus on our core priorities such as fibre-to-the-home, improve our balance sheet and ensure long-term value to our investors," said Karen Sheriff, president and CEO, Bell Aliant. "We have known for some time that for xwave to continue to expand nationally and grow profitability they needed access to scale. Combining with Bell gives xwave access to a national market and additional IT capabilities they do not have today."
With xwave now part of a national organization, customers will benefit from xwave's proven expertise and also have access to a broader slate of national technology and professional services provided through Bell Business Markets.
xwave has operated as part of Bell Aliant and its predecessor companies for a number of years with particular focus on advanced technology solutions and IT professional services, including the provision of leading e-health solutions.
"We are eager to welcome the skilled xwave team, building on their excellent service to clients in Atlantic Canada. Combining xwave's leading e-health, IT professional services and advanced technology solutions with Bell Business Markets' national team of information and communications technology (ICT) professionals and our world-class broadband networks enhances our leadership in delivering the best solutions for healthcare, public sector and corporate enterprise customers," said Stéphane Boisvert, president, Bell Business Markets.
The purchase price of CAD $40 million has been assessed as fair value by an independent valuator. The transaction is expected to close on January 1, 2011.
Bell, Bell Aliant and xwave will work together to ensure a seamless transition for employees, partners and customers.
Caution concerning forward-looking statements
This news release contains forward-looking statements relating to the proposed sale of Bell Aliant's xwave division to Bell. Unless otherwise indicated, such forward-looking statements describe management's expectations at October 26, 2010. These statements are also subject to important known and unknown risks, assumptions, uncertainties and other factors that may cause actual events to differ materially from those expressed in the forward-looking statements. The timing and completion of the proposed sale transaction is subject to each of the parties fulfilling their commitments under the transaction, including terms and conditions which may be outside of the direct control of the parties. All forward-looking statements in this news release are qualified by these cautionary statements, and there can be no assurance that the results or events predicted will be realized. Except as may be required by Canadian securities laws, Bell Aliant disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. Readers should not place undue reliance on any forward-looking statements.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest regional communications providers and the first company in Canada to cover an entire city with fibre-to-the-home (FTTH) technology with its FibreOP(TM) services. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Through its xwave offices, Bell Aliant also provides IT professional services and advanced technology solutions. Bell Aliant's employees deliver the highest quality of customer service, choice and convenience. For more information about Bell Aliant visit www.bellaliant.ca.
About xwave
xwave, a division of Bell Aliant, is an Information Technology company that provides customers with Advanced Technology Solutions and IT Professional Services, including leading e-health solutions. Through highly-skilled IT professionals, xwave plans, designs, builds, and delivers technology solutions that meet customers' business needs. xwave employs 500 people in offices in St. John's, Halifax, Moncton, Saint John, Fredericton, Summerside, Montreal, Ottawa, and Toronto. More information can be found at www.xwave.com.
%SEDAR: 00023938EF
For further information: For further information: Media relations: Alyson Queen, 866-696-6700, [email protected]; Investor relations: Zeda Redden, 877-487-5726, [email protected]
Share this article