March 20, 2015 - 1:17 PM
KELOWNA - A Kelowna-based technology and communications infrastructure company has been sold to an Ontario-based company for $33 million.
RackForce Networks, the largest Canadian company specializing in enterprise cloud services, was aquired by TeraGo Inc., a national provider of complete end-to-end data services. The deal was announced by Thornhill, Ontario-based TeraGo in a media release Thursday, March 19.
RackForce offers services nationally and globally. They've been in business since 2001, working with more than 12,000 customers including small businesses and fortune 100 businesses, along with federal and provincial governments and public and post secondary educational clients. They received a prestigious award in their field in 2014 — named VMware Cloud Partner of the Year.
Though RackForce's main hub is located in Kelowna, the company's cloud services are provided from four network enabled cloud delivery centres across Canada. This helps to ensure data can be recovered should disaster strike, and to meet strict data privacy requirements, according to the release.
TeraGo provides businesses across Canada data and communications services, data centre co-location and cloud hosting services. Through their IP network, the company services approximately 4,100 business customers in 46 major markets across Canada, including Vanouver, Montreal, Toronto, Calgary, Edmonton and Winnipeg. They have data centres in the Greater Toronto Area and the Greater Vancouver Area.
The aquisition is expected to close March 27, 2015, and will be financed with cash, to be made available under TeraGo's credit facilities. RackForce's price tag combines $31 million in cash with $2 million in common shares of TeraGo.
The aquisition is expected to increase the scale and reach of TeraGo's data centre and cloud services business. Combining with RackForce's GigaCentre in Kelowna, TeraGo's data centre footprint increases to 58,000 from 40,000 square feet of floor space and more than doubles available power to roughly 13MW from 6MW.
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News from © InfoTel News Ltd, 2015