Accretive Acquisition Increases Cloud and Managed Services Capabilities and Customers
TORONTO, ONTARIO–(Marketwired – Sept. 18, 2015) – TeraGo Inc. (“TeraGo” or the “Company“) (TSX:TGO) (www.terago.ca), a national provider of complete end-to-end data solutions, today announced that it has acquired (the “Acquisition“) 100% of the issued and outstanding shares of Ottawa-based Codeninja Ltd., which operates as BoxFabric (“BoxFabric“). BoxFabric provides cloud and managed services, including the delivery of mission critical IS/IT systems and applications, broadband network connectivity, related professional services, and technical support to a range of clients including federal and provincial government entities, hospitals, non-profit organizations and private enterprises.
“The BoxFabric acquisition extends TeraGo’s cloud presence into Ottawa, which has a robust and growing high-tech industry that we believe is well suited for TeraGo’s full suite of IT solutions,” says Stewart Lyons, President and Chief Executive Officer of TeraGo. “The BoxFabric team has built strong relationships with its clients and we look forward to continuing their role as a trusted partner, while also expanding the capabilities and services available.”
The Acquisition was 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.
TeraGo, through its wholly owned subsidiaries TeraGo Networks Inc. and RackForce Networks Inc., provides businesses across Canada and globally with network and voice services, data centre services and enterprise infrastructure cloud services. TeraGo owns and manages its IP network servicing over 4,200 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg, as well as operating seven data centres in the Greater Toronto Area, the Greater Vancouver Area, Kelowna and Winnipeg. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and was selected as one of Canada’s Top Small and Medium Employers for 2015 and is recognized as a Canadian Telecommunications Employer of Choice for 2015.
For more information about TeraGo, please visit www.terago.ca.
This press release includes certain forward-looking statements that are made as of the date hereof. Such forward-looking statements may include, but are not limited to, statements regarding future acquisitions in the Company’s pipeline. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. The forward-looking statements reflect the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risk that the acquisition of BoxFabric may not be accretive to the Company’s existing business, revenue growth strategies may not materialize, trends in the global cloud and data center markets may not be accurately projected, and those risks set forth in the “Risk Factors” section in our annual MD&A for the year ended December 31, 2014 available on www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TeraGo does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.