TORONTO – TeraGo is buying Mobilexchange Spectrum Inc. (MSI) and its parent holding company in a cash deal valued at $5.7 million.
The data centre and connectivity services provider said Friday that the acquisition means that it will hold six 24 GHz spectrum licences totalling 960 MHz in Canada's six largest cities covering approximately 3.1 billion MHz-Pop. TeraGo added that it has already been using the spectrum licences to provide wireless internet services to its business customers through subordinate licences issued to it under an existing lease with MSI.
"Since 1999, TeraGo has invested in spectrum equipment and technology to provide a competitive alternative to the larger wireline incumbent carriers”, said TeraGo president and CEO Tony Ciciretto, in the announcement. “With the introduction of 5G technology and the increased bandwidth and capabilities it provides, the value of our millimetre wave spectrum assets will be further enhanced, greatly improving our overall competitiveness."
TeraGo added that the purchase is being funded through the net proceeds of its bought deal equity offering which closed in June.
The deal and transfer of the spectrum licenses to TeraGo is subject to Innovation, Science and Economic Development Canada (ISED) approval along with customary closing conditions.
