National business broadband services provider TeraGo Inc. has entered into a definitive share purchase agreement to acquire Data Centers Canada Inc. Data Centers Canada operates a 16,000 square foot SSAE 16 certified data centre facility in Vaughan, Ontario, and provides data centre solutions, including colocation and disaster recovery, to businesses, enterprises, public sector and technology service providers. The deal is expected to close on May 31, 2013, subject to satisfaction of customary closing conditions.
The purchase price is expected to be approximately $9,500,000, subject to any purchase price adjustments, and will be payable in cash installments. Data Centers Canada’s operations and management team will continue on with the Company to ensure a smooth transition.
“Acquiring Data Centers Canada will support our initiative to offer complementary services,” says Bryan Boyd, President and Chief Executive Officer, TeraGo Networks Inc. “This is a positive step toward our continued growth and will enable us to provide services that our customers require to do business.”
“We are excited Data Centers Canada will be joining TeraGo Networks,” noted Tony Di Benedetto, Co-Founder and Managing Partner, Data Centers Canada Inc. “TeraGo has a great reputation and we are confident that the synergies TeraGo brings will enhance the value proposition of both Data Centers Canada and TeraGo to our combined customer base.”
- The acquisition supports TeraGo’s strategic plan in offering complementary services to business and enterprise customers.
- Data Centers Canada is generating positive EBITDA and Net Income and currently has 165 contracted customers occupying 207 racks.
- Data Centers Canada currently has four primary market segments: Business; Enterprise; Government and Technology Service Providers.