Novacap sells Fibrenoire to Québecor’s Vidéotron for $125 mln

Canadian private equity firm Novacap has sold Fibrenoire, a fibre optic connectivity services provider, to Vidéotron for $125 million. In a separate release, Vidéotron, a subsidiary of Québecor, said it made the acquisition to meet growing demand from customers for fibre optic connectivity. Based in Montréal, Fibrenoire has been backed by Novacap since April 2013. Over the past three years, the company has more than doubled its revenue and profitability, Novacap reported, in part due to acquisitions supported by the investor. In December, Cegid Group acquired Novacap-backed Technomedia, a cloud-based talent management software provider.

PRESS RELEASE

NOVACAP sells Fibrenoire to Vidéotron after generating substantial value on their initial investment

Montreal, January 7, 2016 – NOVACAP, one of Canada’s leading private equity firms, is pleased to announce it has reached an agreement with Videotron, a subsidiary of Quebecor, for the sale of Fibrenoire for a total consideration of $125 million. Fibrenoire is a leading fibre optic connectivity services provider for businesses in Quebec and Ontario.

“We take immense pride in what Fibrenoire has accomplished since our investment in April 2013. From the start, we saw great potential in the company”, said Mr. Stéphane Tremblay, Senior Partner at NOVACAP TMT.

In 2013, NOVACAP played a key role in the acquisition by Fibrenoire of two major independent fibre optic network operators. These acquisitions enabled Fibrenoire to become the largest independent player in connectivity services, by operating the largest fiber optic network dedicated exclusively to businesses in Quebec.

Over the past three years, Fibrenoire has more than doubled its revenue and profitability. “The management’s team contribution was fundamental to the growth of the company. Fibrenoire is the perfect example of NOVACAP’s strategic, operational and financial value-add in a company’s development plan enabling it to reach the highest industry standards”, concluded Mr. Tremblay.

“The valuable advice, experience and capital provided by NOVACAP were vital to the success of our company”, highlights Benjamin Desmarais, President and CEO of Fibrenoire. “We would like to thank NOVACAP for its contribution and we are excited to join forces with Vidéotron to better meet the growing needs for fibre optic connectivity services for businesses.”

RBC Capital Markets served as exclusive financial advisor to the sellers and McMillan LLP acted as legal counsel to the sellers.

About NOVACAP
With assets under management of over $1.5 billion, NOVACAP has consistently been recognized as one of the leading private equity firms in Canada since 1981. Its unique collaborative approach with entrepreneurs, based on deep operational expertise and active management of its investment, has helped accelerate growth and maximize value for many companies across North America. NOVACAP’s culture is based on creating long-term value through an investment philosophy focused on discipline and growth. With an experienced management team and substantial financial resources, NOVACAP is well positioned to continue building world-class companies. For more information, please visit www.novacap.ca.

About Fibrenoire
Founded in 2007, Fibrenoire is a telecommunication company specializing exclusively in fibre optic connectivity services for businesses. Fibrenoire deploys and operates its own network of over 4,500 kilometers in the metropolitan areas of Montreal, Quebec City, Ottawa and Toronto. The company provides internet, ethernet, private and managed IP MPLS, custom-built dark fibre and wavelength transport services. Fibrenoire serves more than one thousand companies of all sizes, including several international carriers and Internet Service Providers (ISP) operating in Canada and internationally. The
company has more than sixty employees, with its head office in Montreal. For more information, please visit www.fibrenoire.ca.

Contact :
Pascal Tremblay
President and Managing Partner
Novacap TMT
450-651-5000 ext. 235
ptremblay@novacap.ca

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