TeraGo Inc. (TSX:TGO) has entered into a definitive asset purchase agreement under which TeraGo Networks Inc., a wholly owned subsidiary of TeraGo, will acquire the hosting business currently operated and carried out by Ottawa-based AirVM, Inc. the company said.
The pending acquisition will bring expanded Infrastructure as a Service (Iaas) offerings to TeraGo from locations in the United States and the United Kingdom. In addition, the hosting business will bring with it additional talent by way of new employees joining the TeraGo team and a host of new customers and channel partners that TeraGo is eager to work with.
The acquisition will be funded without accessing TeraGo´s existing credit facilities and therefore offers additional financial flexibility for TeraGo to continue to pursue opportunities within its acquisition pipeline. Closing of the acquisition is expected to occur toward the end of May, 2016.
TeraGo is a national provider of complete end-to-end data solutions. The company provides businesses across Canada and globally with network and voice services, data center services and enterprise infrastructure cloud services. TeraGo manages over 3,000 cloud workloads, seven data centers in the Greater Toronto Area, the Greater Vancouver Area, Ottawa, Kelowna and Winnipeg and owns and manages its own IP network.