Oak Hill sells ViaWest to Shaw Communications

The California-based private equity firm will sell ViaWest for $1.2 billion

California-based Oak Hill Capital Partners is selling ViaWest, a Denver-based data center management company to Shaw Communications for $1.2 billion, according to a statement.

Oak Hill declined to comment on the transaction.

ViaWest is one of the largest privately providers of data centre infrastructure, cloud technology and managed IT solutions in North America. ViaWest employs over 350 people and services more than 1,300 customers across seven states. The company will retain the original management team and become a wholly owned subsidiary of Shaw Communications.

Shaw Communications is a Canadian telecommunications services provider. The data center infrastructure will further Shaw’s efforts in providing enterprise telecommunications services in Western Canada.

The acquisition is set to close in September and is subject to U.S. regulatory approval. Shaw plans to fund the deal using cash and its existing credit facility and said the transaction would have no material effect on its free cash flow.

Oak Hill acquired ViaWest in 2010 from Trinity Equity Investors, Goldman, Sachs & Co. and Quilvest. The deal was an investment in partnership with then Chairman and CEO Roy Dimoff.

The sale marks another significant exit for Oak Hill, which sold its interest in UK-based Firth Rixson, a maker of aerospace and jet engine components for $2.85 billion to Alcoa, PEI reported in June. Oak Hill also sold the Hillman Companies to New York-based CCMP Capital Advisors for $1.475 billion in May.