Rackforce Sells For $33M

Photo: Wayne Moore - Castanet File Photo

Canada's largest enterprise cloud service provider is about to be sold.

RackForce Networks, which provides services for national and international clients from its Kelowna-based GigaCentre has entered into a share purchase agreement with TeraGo Inc.

Under terms of the sale TeraGo will acquire 100 per cent of issued and outstanding shares of RackForce for aggregate cash considerations of $31 million plus $2 million in common shares of TeraGo.

The acquisition is expected to close on, or about, March 27.

The purchase will increase TeraGo's data centre footprint from 40,000 to 58,000 square feet of raised floor space and available power from 6MW to approximately 13MW.

"The RackForce acquisition provides TeraGo with a growth platform in the attractive cloud services industry and helps further position TeraGo as a leading national end-to-end data solution company," says TeraGo’s president and CEO Stewart Lyons.

"RackForce will complement our business and transforms TeraGo into Canada's premier enterprise class network, data, voice and cloud services provider."

RackForce serves multiple high value enterprise customers across numerous verticals, including federal and provincial governments, and education. RackForce’s top-25 customers generate average monthly revenue of over $17,000.

"We recognize the value, expertise and experience RackForce exhibits as a proven cloud partner for enterprise clients running mission-critical applications," Lyons continued. "We warmly welcome RackForce professionals and we are excited to enter into a new phase of our business at TeraGo."