Canadian national broadband services provider TeraGo Networks has entered into a definitive share purchase agreement to acquire Data Centers Canada, which operates a 16,000 sq ft data center facility in Vaughan, Ontario, and provides colocation and disaster recovery services, to businesses, enterprises, public sector and technology service providers.
The deal is expected to close at the end of month, subject to satisfaction of customary closing conditions. The purchase price is expected to be approximately CA$9.5m in cash.
Data Centers Canada’s operations and management team will stay with the company to ensure a smooth transition.
“Acquiring Data Centers Canada will support our initiative to offer complementary services,” Bryan Boyd, president and CEO of TeraGo, said. “This is a positive step toward our continued growth and will enable us to provide services that our customers require to do business.”
Tony Di Benedetto, co-founder and managing partner at Data Centers Canada, said he was excited to join TeraGo. “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.”
Data Centers Canada is generating positive profit and currently has 165 contracted customers occupying 207 racks. It serves four primary market segments: business, enterprise, government and technology service providers.