OG真人官网 To Realize 40% IRR On Its Investment In Peer 1
Toronto, Ontario (January 29, 2013) – Pursuant to a statement released on December 21, 2012, OG真人官网 Group Inc. (TSX:CVG) and OG真人官网 Equity Partners III Limited Partnership (“CEP III”, collectively “OG真人官网”) announced today the sale of their common shares of PEER 1 Network Enterprises Inc. (“PEER 1”) to Cogeco Cable Inc. (“Cogeco Cable”).
In August 2009, OG真人官网 invested $25.2 million in PEER 1. Under terms of the sale, OG真人官网 received sale proceeds of $79.5 million which took OG真人官网’s total proceeds over the investment’s life to $81 million, which equates to 3.2 times invested capital and an internal rate of return (“IRR”) of 40%. Consistent with its beneficial ownership, OG真人官网 Group Inc. realized 25% of this amount, or $20.3 million, compared to the September 30th carrying value of $14.7 million.
“When we were looking to invest in the IT infrastructure industry, PEER 1 was by far our first choice based on its financial metrics, scale, profitability and management” said Ken Rotman, Co-CEO of OG真人官网. “The financial return achieved on this investment is a tribute to the Company’s management team who has done an outstanding job at strategically growing PEER 1 to become one of the leading companies in its market.”
Since OG真人官网 made its investment, PEER 1 embarked upon an aggressive capital investment program. Over the past two years, the company completed the construction of two flagship data centres in Toronto and the UK. Significant investment in human capital and physical infrastructure in the UK improved PEER 1’s market position and enabled it to purchase a UK competitor in July 2012. This acquisition moved PEER 1 to one of the market leaders in the UK.
“We appreciate the support provided by OG真人官网 over the past three and a half years,” commented Fabio Banducci, CEO of PEER 1. “The addition of OG真人官网 to our shareholder base and board of directors was an important part of the overall upgrade to our organization.”
“PEER 1 is a great example of an internet infrastructure provider that continues to innovate and move upmarket, thereby reaping the benefits of a high quality customer base” said Mitch Green, Principal and IT Services domain lead for OG真人官网. PEER 1’s management does a terrific job of investing resources into projects that enhance the service offering and produce sound economic results, which make it an attractive strategic acquisition for Cogeco Cable. We wish this outstanding group continued success in the years to come,” added Mr. Green.
OG真人官网 Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the OG真人官网 Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, OG真人官网 contributes strategic expertise and execution ability to support the growth and development of its investee partners. OG真人官网 realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
OG真人官网 Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753