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.
The transaction involves Carrier Connect issuing 4,606,704 common shares to PureColo securityholders, with these 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 following closing, subject to adjustment based on PureColo's debt covenants outlined in the agreement. Completion of the acquisition remains subject to customary closing conditions, including approval from the TSX Venture Exchange.
PureColo brings significant operational strength to the combined entity, with unaudited revenue for 2025 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 operations.
The acquisition's importance lies in Carrier Connect's strategic expansion into the Ottawa market and the combined companies' positioning to capitalize on emerging artificial intelligence opportunities. Rainer Paduch, Chief Executive Officer of PureColo, noted that during the due diligence process, the company has already identified mid-market AI opportunities that align well with both Carrier Connect and PureColo's data center capabilities, suggesting significant revenue potential moving forward. The integration appears promising, with Paduch indicating that the relationship between the two teams has progressed well through the due diligence phase.
Mark Binns, Chief Executive Officer of Carrier Connect, expressed enthusiasm about adding PureColo's Ottawa-based data centers to the company's portfolio. With this acquisition, Carrier Connect now operates four data centers across three regions, establishing a stronger revenue base and expansion capacity. The additional space will enable the company to better serve existing and prospective customers while continuing its acquisition strategy to accumulate further capacity. The transaction represents Carrier Connect's ongoing execution of its roll-up strategy for Tier II/III data centers, as detailed in their corporate mission available at https://www.sedarplus.ca.
For the data center industry, this acquisition highlights the continuing consolidation trend among smaller and mid-sized data center operators. The combination creates a more substantial player with geographic diversity across Vancouver, Perth, and now Ottawa, potentially offering customers improved redundancy and disaster recovery options. The focus on mid-market AI opportunities suggests both companies see significant growth potential in serving artificial intelligence companies requiring specialized data center solutions. The carrier-neutral approach maintained by both companies ensures independence and flexibility for customers seeking colocation and server hosting services for internet connectivity needs.
