Carrier Connect Data Solutions Inc. has entered into a definitive share purchase agreement to acquire all issued and outstanding securities of PureColo Inc., an established provider of carrier-neutral data centers in the Ottawa region. The acquisition represents a strategic expansion for Carrier Connect as it continues its mission to consolidate Tier II/III data centers internationally that specialize in colocation services.
Under the terms of the agreement, Carrier will issue 4,606,704 common shares to PureColo securityholders, with these consideration shares subject to escrow conditions releasing in thirds at 4, 8, and 12 months following closing. Additionally, PureColo securityholders will receive approximately $2,326,000 in cash consideration payable over a nine-month period, subject to adjustment based on PureColo's debt covenants. The transaction completion remains subject to customary closing conditions, including approval from the TSX Venture Exchange.
PureColo brings significant operational strength to the acquisition, with unaudited 2025 revenue forecast at approximately CAD $2.35 million based on current run rates. The company demonstrates strong financial performance with gross profit of approximately $1.13 million (48% margin) and operational expenses forecast at $1 million (46% of revenue). PureColo serves approximately 60 customers across its two data centers located on Riverside Drive and March Road in Ottawa, Ontario, with revenue growth tracking at 28% year-over-year and the company maintaining EBITDA-positive status.
The acquisition positions the combined entity to better serve the growing demand for data center services, particularly in the mid-market AI sector. Rainer Paduch, Chief Executive Officer of PureColo, noted that the due diligence process revealed significant synergies between the companies, stating that PureColo has already identified opportunities for Carrier's existing data centers and has seen an uptick in mid-market AI opportunities that align well with both companies' capabilities. This suggests the acquisition could drive substantial revenue growth in the evolving AI infrastructure market.
Mark Binns, Chief Executive Officer of Carrier Connect, expressed enthusiasm about the strategic benefits, noting that the acquisition expands Carrier's portfolio to four data centers across three regions with a strong revenue base and expansion capacity. The addition of PureColo's Ottawa facilities provides more space to serve existing and prospective customers while supporting Carrier's ongoing acquisition strategy to accumulate further capacity. The integration is expected to proceed smoothly based on the positive working relationship established during the due diligence process.
The transaction strengthens Carrier Connect's position in the competitive data center market by adding established infrastructure and customer relationships in a key Canadian market. With PureColo's $3.5 million in property, plant and equipment and $3.7 million in total assets, the acquisition represents a substantial addition to Carrier's operational capabilities. The carrier-neutral approach maintained by both companies ensures continued independence and flexibility for clients seeking colocation and server hosting services for internet connectivity, geographical redundancy, and disaster recovery needs.
