Radiant Communications Acquired for $23.5 Million

Radian Communications | BCBusiness
Radiant Communications Corp provides IT solutions to many of Canada’s most popular brands

Vancouver’s Radiant Communications Corp. announced it had entered into a takeover agreement with Comwave Networks

The Vancouver-based cloud services provider, which offers a suite of IT products and services marketed to medium-sized enterprise companies across Canada, will be acquired by a subsidiary of Comwave Networks Inc.

“This transaction will add continued momentum to Radiant’s position as a leading competitor in the underserved medium- and small-enterprise telecom market,” said Kelly Edmison, Radiant’s chairman of the board, in a statement.

Radiant Communications’ ownership had been in limbo over the past few months since Radiant’s two largest shareholders, Mazam Opportunities Fund LP and Pender Growth Fund (VCC) Inc., which collectively own 76 per cent of the company’s shares, made unsuccessful attempts to privatize the company.

A wholly owned subsidiary of Comwave Networks will take over Radiant Communications at $1.43 per common share as part of the agreement. Toronto-based Comwave is Canada’s largest privately owned telecommunications company and is Canada’s largest VoIP provider.

The company’s portfolio of secure IT infrastructure—one of the largest Internet footprints in Canada—and the increasing popularity of cloud-based services amongst mid-sized Canadian companies, have helped edge up Radiant’s share price over the last year.

“More Canadian and worldwide companies are moving to the cloud. People think the cloud is for the future, but the cloud is really about simple, flexible, cost-efficient ways to improve your business in a very innovative way,” said Paul Healey, then the new CEO at Radiant, last year