TeraGo data centre servers

TeraGo Networks Inc., of Thornhill, Ont. is looking to expand its data centre and cloud computing offerings by purchasing Kelowna, B.C.-based RackForce Networks Inc., which is considered to be one of the country’s largest enterprise cloud provider.

TeraGo (TSE: TGO) is offering $31 million in cash and $2 million of common TeraGo share for RackForce.

TeraGo provides wireless services in the 24 GHz and 38 Ghz bands to businesses in suburban areas where wireline broadband either doesn’t get to or is hard to reach, such as industrial parks. The company is focused on SMBs.

RackForce is a national provider of complete end-to-end data solutions for enterprise customers across numerous verticals, including federal and provincial governments. The company’s top 25 customers generate average monthly revenues of over $17,000.

Acquiring RackForce will expand 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. The added capability will allow it to compete against the likes of Telus and Open Text.

“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,” says Stewart Lyons, president of TeraGo, in statement. “RackForce will complement our business and transform TeraGo into Canada’s premier enterprise class network, data, voice and cloud services provider.”

“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,” said Tim Dufour, president of RackForce.

The Acquisition is expected to close on or about March 27.



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