updated 12/21/2012 6:51:55 AM ET 2012-12-21T11:51:55

(Reuters) - Cogeco Cable Inc, a Canadian company that serves mostly rural customers in Ontario and Quebec, said it will buy PEER 1 Network Enterprises Inc for about C$526 million to expand its cloud computing and data hosting services.

Montreal-based Cogeco, which provides cable-TV, high-speed internet and telephone services, offered C$3.85 for each PEER 1 share. The offer is at a premium of 30.5 percent to PEER 1 stock's Thursday close.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian)

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp

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