Carrier Connect Data Solutions Inc. Signs Definitive Agreement to Acquire Purecolo Inc.
Executive Summary
- Carrier Connect Data Solutions Inc. entered into a definitive Share Purchase Agreement to acquire all issued and outstanding securities of PureColo Inc.
- Consideration includes issuance of 4,606,704 CCDS common shares (subject to escrow release at 1/3 intervals over 12 months) and cash consideration of approximately $2,326,000 payable over nine months.
- PureColo’s unaudited 2025 revenue is forecast at CAD ~$2.35 M with EBITDA‑positive operations, adding two data centers and ~60 customers to CCDS’s portfolio.
Key Details
- Transaction Structure:
- Share Purchase Agreement signed on November 27, 2025.
- CCDS will issue 4,606,704 common shares (“Consideration Shares”) to PureColo securityholders.
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Shares are placed in escrow and released in three equal tranches at 4, 8, and 12 months post‑closing.
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Cash Consideration:
- Approximate cash payment of $2,326,000, payable over a nine‑month period after closing.
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Amount subject to adjustment based on PureColo’s debt covenants in the SPA.
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Closing Conditions:
- Subject to customary conditions, including approval by the TSX Venture Exchange.
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No finder’s fees or commissions are payable; transaction negotiated at arm’s length.
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PureColo Financial Snapshot (unaudited 2025):
- Revenue: CAD ~$2.35 M (forecast).
- Gross profit: CAD ~$1.13 M (≈48%).
- Operating expenses: CAD ~$1.0 M (≈46%).
- EBITDA‑positive; YoY revenue growth ≈28%.
- Assets: $3.7 M total, including $3.5 M property, plant & equipment.
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Customer base: ~60 customers across two Ottawa data centers (Riverside Drive and March Road).
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Strategic Rationale:
- Adds two Tier‑II/III data centers in Ottawa to CCDS’s existing four facilities across three regions.
- Expands capacity for AI, service provider, enterprise, and SMB clientele.
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Provides cross‑selling opportunities with existing CCDS sites and captures mid‑market AI demand.
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Management Comments:
- Rainer Paduch (CEO, PureColo) highlighted smooth integration prospects and new AI‑related revenue opportunities.
- Mark Binns (CEO, Carrier Connect) expressed enthusiasm about the expanded footprint and growth potential.
Notable Quotes
“We are thrilled to be adding PureColo’s Ottawa based data centers to the Carrier Connect portfolio… PureColo gives us more space to offer our existing and prospective customers while we continue to accumulate further capacity through ongoing acquisitions.” – Mark Binns, CEO, Carrier Connect Data Solutions Inc.
“The PureColo team has been working with the CCDS team through the due diligence process… should drive significant revenue going forward.” – Rainer Paduch, CEO, PureColo Inc.