TeraGo Networks, a wholly-owned subsidiary of data center and cloud services provider TeraGo, has signed a definitive asset purchase agreement to acquire the hosting business currently operated and carried out by Ottawa-based AirVM Inc. Financial terms of the acquisition were not disclosed.
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 from AirVM 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 Hosting Business acquisition will facilitate our growth in the IaaS cloud business and will add new international channel partners that will enable us to further accelerate our growth, both here and abroad,” said Stewart Lyons, President and CEO of TeraGo. “This acquisition gives us some international presence, and enables us to serve European and American customers with very competitively priced offerings due to foreign exchange rates. We are also excited to welcome the new employees to our Company who have previously worked to successfully build and grow the Hosting Business at AirVM.”
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 towards the end of May, 2016.
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. The company serves over 4,000 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg.