Abry Partners to Buy Q9 Networks

Abry Partners LLC agreed to buy the Canadian data-center company Q9 Networks Inc. for 361 million Canadian dollars ($345 million) as the private-equity firm moves to expand into the Internet-infrastructure market. Boston-based Abry, which specializes in media and communications, will pay C$17.05 for each share outstanding of Toronto-based Q9, a 31% premium to Friday's closing price on the Toronto Stock Exchange. Q9 provides outsourced data-center infrastructure and managed services for information-technology operations and data processing. Holders of 28% of Q9`s stock, including Chief Executive Osama Arafat and President Paul Sharpe, have agreed to back Abry`s bid. Q9`s fiscal second-quarter results came in below expectations, with some analysts placing the blame on spending to expand facilities. The deal contains a "go shop" provision that will allow Q9 to solicit other bids by Oct. 3.

Wall Street Journal; August 26, 2008