TORONTO – TeraGo is buying Canadian enterprise cloud service provider RackForce Networks for $31 million, the companies said Thursday.
TeraGo said that the acquisition, which is expected to close on or about March 27, 2015, increases the scale and reach of its data centre and cloud services business. Specifically, due to the addition of RackForce's GigaCenter in Kelowna, BC, the move increases TeraGo's data centre footprint from 40,000 to 58,000 square feet of raised floor space and available power from 6MW to approximately 13MW.
Based in Kelowna and in operation since 2001, RackForce Networks says it is the country's largest enterprise cloud service provider, serving multiple national and global high value enterprise customers across verticals that include K-12, advanced education, and federal and provincial governments.
"The RackForce acquisition provides TeraGo with a growth platform in the attractive cloud services industry and helps further position TeraGo as a leading national end-to-end data solution company," said president and CEO Stewart Lyons, in the announcement. "RackForce will complement our business and transforms TeraGo into Canada's premier enterprise class network, data, voice and cloud services provider."
"TeraGo is an ideal match for RackForce and this acquisition is an excellent development for our employees and our customers," added RackForce president and CEO Tim Dufour. "With TeraGo, we have gained a partner who is focused on delivering end-to-end IT solutions to meet the expanding technology needs of SMBs and enterprises, while sharing our commitment for exceptional customer service."
TeraGo said that it will finance the transaction with cash available under its amended credit facilities, which will increase from $50.0 million to $85.0 million at the time of closing of the acquisition.
