Carrier Connect Data Solutions Inc. has entered into a definitive agreement to acquire PureColo Inc., an established provider of carrier-neutral data centers in the Ottawa region. The acquisition, valued at approximately 4.6 million common shares and $2.3 million in cash consideration, represents a strategic expansion for Carrier Connect as it continues its mission to consolidate Tier II/III data centers internationally. The transaction structure involves issuing 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. The cash consideration of approximately $2,326,000 will be payable over a nine-month period and is subject to adjustment based on PureColo's debt covenants outlined in the share purchase agreement. Completion remains subject to customary closing conditions, including approval from the TSX Venture Exchange.
PureColo brings significant operational strength to the combined entity, with unaudited 2025 revenue forecast at approximately CAD $2.35 million based on current run rates. The company maintains strong financial metrics 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 Ottawa data centers located on Riverside Drive and March Road, demonstrating consistent revenue growth of 28% year-over-year while remaining EBITDA positive. Rainer Paduch, Chief Executive Officer of PureColo, noted the positive integration progress during due diligence, stating that the relationship has progressed well. He highlighted emerging opportunities for Carrier Connect's existing data centers that were referred through PureColo's network, along with an uptick in mid-market AI opportunities that align well with both companies' data center capabilities and should drive significant future revenue.
Mark Binns, Carrier Connect's Chief Executive Officer, 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. Binns emphasized that PureColo provides additional space to serve existing and prospective customers while the company continues pursuing further capacity through ongoing acquisition strategies. The acquisition positions Carrier Connect to better serve the growing demand for colocation and data center solutions from AI companies, service providers, enterprises, and small businesses. As a carrier-neutral organization, Carrier Connect maintains fully independent systems within its leased spaces, with current principal markets in Vancouver, Canada and Perth, Australia. The company's profile and regulatory filings remain accessible through the Canadian securities regulators at https://www.sedarplus.ca.
