PE-backed Primus Canada to be bought by Birch Communications

Primus Telecommunications Canada Inc, which sought and obtained creditor protection earlier this month, has agreed to be bought by Birch Communications Inc, a U.S.-based provider of IP-based communications, broadband, cloud and IT services. No financial terms were disclosed. Founded in 1997, Etobicoke, Ont.-headquartered Primus is a telecommunications service provider in the domestic market. It was acquired by U.S. private equity firm York Capital Management in a US$129 million deal in May 2013.

PRESS RELEASE

Primus announces an agreement to be acquired by Birch Communications

TORONTO, JAN 21, 2016 – We’re pleased to announce that we’ve entered into an agreement to be acquired by Birch Communications. In order to complete the sale of our business and assets to Birch, we’ve commenced a restructuring process that must be approved by the courts over the coming weeks. We’re excited about the combined company which will provide a broader array of services at prices designed to best serve Primus customers and we’ll continue to offer a strong competitive choice in the marketplace.

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