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Quebecโ€™s Telecon expands again

A Quebec-based telecommunications infrastructure builder is continuing its cross-Canada expansion by buying the second division of a struggling competitor in five months.

Group Telecon of Trois-Riveres said Wednesday it has bought the engineering services division of Montrealโ€™s Netricom to extend its wired and wireless design, build and installation services for wireless and wireline networks.

Andre Heroux, Teleconโ€™s CEO, said in an interview the companyโ€™s clients include BCE Inc.โ€™s Bell Canada, Rogers Communications, Telus Corp., Videotron for whom it does everything from build cellular towers to installing cabling in buildings and fibre optic to homes, as well as school boards

With an engineering division, which prepares for bidding on upcoming construction of these networks, โ€œwe have visibility of what will be built in the next few months or yearsโ€ by major carriers, Heroux said.

โ€œTelcon will now have that scouting of what will be coming ahead of time so we can offer what I believe is a point of differentiation from our competitors, a turnkey solution where from one-stop you will obtain the design, construction installation, repair and maintenance of the telecommunications network.โ€

The acquisition brings Teleconโ€™s employee count to 2,100.

In December Telecon bought Netricomโ€™s wireless network construction division, which largely builds microwave and celluar antenna sites on roof tops and towers, to give the company offices in British Columbia, Alberta and Nova Scotia as well as extend its small Toronto-area operations.

However, what Heroux really wanted was Netricomโ€™s engineering group. During discussions on the wireless division he mentioned that if it was for sale Telecon was interested.

In addition to the four provinces mentioned above, Telcon now has offices in New Brunswick, Saskatchewan and Newfoundland.

Competitors include the infrastructure divisions ofย Vancouverโ€™s Ledcor Group and Aecon Group.

The acquisition was funded in part from a total of $22 million in recent investments by two of Teleconโ€™s major shareholders, the Capital rรฉgional et coopรฉratif Desjardins (CRCD) and La Caisse de dรฉpรดt et placement du Quรฉbec (The Caisse โ€“ Quebecโ€™s pension fund manager).

Heroux said his plan is to keep expanding, based on the companyโ€™s 2012 vow to double revenue over the coming three to five years.

His immediate goal, though, is to get โ€œmore people in the trenchesโ€ in Alberta and B.C., either through hiring or another acquisition.

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