BCE’s new cloud buy

Article Excerpt

BCE INC. $61.27 (Toronto symbol BCE; Shares o/s: 869.5 million; Market cap: $53.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%; www.bce.ca) acquired a 35.4% stake in Q9 Networks Inc. in 2012. Q9 provides cloud datastorage and web-hosting services to businesses across Canada. Cloud computing is where data files and software are kept on centralized servers. Users then access that information over the Internet or some other computer network. By centralizing data and programs, cloud computing cuts a business’s costs and improves security. Q9 has data centres in Ontario, Alberta and B.C. BCE has now agreed to buy the remaining 64.6% of Q9 from the Ontario Teachers’ Pension Plan and two other partners for $675 million. BCE will profit from full control of Q9 as more firms and government agencies move to cloud computing. Q9 is BCE’s second big acquisition this year after the $3.9 billion purchase of MANITOBA TELECOM $38.15 (Toronto symbol MBT; Shares o/s: 74.2 million; Market cap:…