Carrier Connect Data Solutions Expands Portfolio with Acquisition of PureColo

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 delivering colocation services. PureColo brings two operational data centers located on Riverside Drive and March Road in Ottawa, Ontario, serving approximately 60 customers with services including internet connectivity, geographical redundancy, and disaster recovery solutions.

Under the terms of the agreement, Carrier Connect will issue 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. Additionally, PureColo securityholders will receive cash consideration expected to be approximately $2,326,000, payable over a nine-month period following closing and subject to adjustment based on certain debt covenants. The transaction completion remains subject to customary closing conditions, including approval from the TSX Venture Exchange, with the negotiation conducted at arm's length and no finders fees or commissions payable.

PureColo's financial performance demonstrates strong growth potential, with unaudited revenue for 2025 forecast at approximately CAD $2.35 million based on current run rates. The company maintains healthy margins with gross profit of approximately $1.13 million (48%) and operational expenses forecast at $1 million (46%). Revenue growth at PureColo is tracking at 28% year-over-year, with the company being EBITDA positive and possessing $3.5 million in property, plant and equipment within total assets of $3.7 million. This acquisition significantly expands Carrier Connect's operational footprint, bringing the company's total to four data centers across three regions with enhanced revenue base and expansion capacity.

Rainer Paduch, Chief Executive Officer of PureColo, emphasized the strategic alignment between the companies, noting that the due diligence process has progressed well and indicating smooth integration expectations. Paduch highlighted emerging opportunities, particularly in the mid-market AI sector, which align well with both Carrier Connect and PureColo's data center capabilities and are expected to drive significant future revenue. Mark Binns, Carrier Connect's Chief Executive Officer, expressed enthusiasm about adding PureColo's Ottawa-based facilities to the portfolio, emphasizing the expanded capacity to serve existing and prospective customers while continuing the company's acquisition-driven growth strategy. The transaction positions Carrier Connect to better serve the growing demand for data center services, particularly as artificial intelligence applications continue to expand across various market segments.