Rogers to sell nine business data centres to InfraRed Capital Partners

TORONTO - Rogers Communications Inc. (TSX:RCI.A and RCI.B; NYSE:RCI), the $19 billion telecommunications giant, announced Thursday it has reached a definitive agreement to sell its portfolio of nine Rogers Business data centres to InfraRed Capital Partners. According to InvestingPro analysis, the company currently trades near its Fair Value.

Under the terms of the agreement, Rogers will continue to sell data centre services on behalf of InfraRed and provide network connectivity to the facilities after the transaction closes. The deal does not include Rogers’ corporate data centres used for the company’s network and IT operations.

InfraRed Capital Partners, part of Sun Life, is described as an experienced digital infrastructure owner. Both organizations stated they will work to ensure a seamless transition for Rogers Business customers.

The transaction is part of Rogers’ planned divestiture of real estate and non-core assets, with the company intending to use the net proceeds to repay debt. Financial terms of the deal were not disclosed in the press release statement.

The sale is expected to close by the end of 2025, subject to customary closing conditions and regulatory approval.

Rogers Communications is Canada’s leading communications and entertainment company with shares traded on the Toronto Stock Exchange and the New York Stock Exchange.

In other recent news, Rogers Communications reported a 2% year-over-year increase in consolidated service revenue and adjusted EBITDA for the second quarter. The company also achieved a significant 39% rise in free cash flow, reaching 925 million dollars. Despite facing a competitive market, Rogers Communications has maintained steady performance through strategic innovations and expansions. These developments come as the company continues to navigate the evolving telecommunications landscape. Analysts have not issued any upgrades or downgrades for Rogers Communications in the immediate aftermath of these results. The company’s stock price remained stable following the announcement of the earnings. Rogers Communications’ recent financial performance highlights its ability to adapt and grow in a challenging environment.

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