Rogers is looking to sell a majority of its data centres, according to reporting from The Logic.
The move is in an attempt to reduce the debt it took on to acquire Shaw. The two companies became one in a $26-billion transaction completed in April 2023.
A data centre is a physical location that houses IT infrastructure and data needed to build and run applications, such as servers, drives, and network equipment. It essentially contains all of the physical aspects of an organization’s digital footprint.
According to Rogers’ website, it offers businesses data centre services, technically known as “colocation services” in this case, allowing them to store their critical data in one of the telecom giant’s facilities.
The Logic, which states it reviewed related documentation, said Rogers is looking to sell off 9 of its 13 facilities as a “distinct business.” The company will reportedly remain a customer to whoever purchases the data centre.
A quick online search shows the company’s data centres are scattered in major cities across the country. A majority of them appear to be located in Ontario, including a massive facility in Markham.
During the process of expanding its data centre business, Rogers acquired a handful of companies and their facilities. In April 2013, it took over BlackIron Data. In September of that year, it acquired the services of Pivot Data and Granite Networks.
While Rogers declined to comment, it did point to a previous statement that outlined the company’s thinking.
In a February 1st conference call with analysts discussing the company’s Q4 2023 results, CFO Glenn Brandt said the company is “divesting non-core assets,” mostly real estate, with a target to make $1 billion.
The move is part of a string of business changes implemented following the merger. Other changes include a voluntary departure program and eliminating duplicate corporate roles.
The price of some services under Shaw, including internet and TV, also saw a hike from Rogers earlier this year. Some customers saw their internet prices increase by $4/month, while the cost of some TV and home phone services increased by $3/month.
Image credit: Shutterstock
Source: The Logic
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