AT&T Canada Inc., Canada’s largest facilities-based competitive provider of local and long distance, voice, data and Internet communications services, announced on June 1, 2000 that it has acquired DMC Inc., a Canadian leader in the deployment of business-focused Internet and e-business strategies. The purchase price of approximately $95 million will be satisfied by the issuance of 769,200 AT&T Canada Class B Non Voting Shares from treasury and the payment of $50 million cash, with one-half of the cash consideration held in escrow for 12 months pending attainment of specified performance targets.
DMC’s management and entire team of Internet and e-business professionals, including founder and CEO Bruno Dammizio, will remain with the company and will operate as an independent, strategic component of AT&T Canada Internet and e-Business Services.
DMC was represented by Ann Watterworth, Christopher Norton (tax), Lawrence Wilder (securities), Stuart English and Jason Bullen of Cassels Brock & Blackwell LLP. AT&T Canada Inc. was represented by Iain Scott, Gordon Baird and Greg Stone of McCarthy Tétrault with securities advice provided by Donald Gilchrist and Alexis Gosselin of Osler, Hoskin & Harcourt LLP.