Carrier Connect enters LOI to acquire Morewave assets

Executive Summary

• Carrier Connect Data Solutions Inc. has signed a non-binding letter of intent (LOI) to acquire the network connectivity and delivery assets of Morewave Communication Inc.
• The acquisition is structured as an all-share transaction valued at $750,000, with shares escrowed and released in four equal tranches over 24 months.
• The transaction is expected to immediately increase Carrier's top-line revenue by 15-20% and unlock a new, highly profitable revenue stream by allowing Carrier to sell network connectivity services to its existing client base across its data center portfolio.

Key Details

• Transaction Structure: Non-binding LOI to acquire business assets delivering networking services and connectivity solutions owned/operated by Morewave.
• Consideration: $750,000 paid in common shares of Carrier Connect Data Solutions Inc.
• Share Escrow Terms: Consideration shares will be escrowed and released in four equal tranches at 6, 12, 18, and 24 months following closing.
• Target Financials: Morewave generates approximately $725,000 in annual recurring revenue with a profit margin exceeding 25%.
• Projected Impact: Carrier’s top-line revenue is expected to grow by 15-20% immediately upon closing, with further growth expected from expanding network offerings across Carrier's other data centers.
• Strategic Rationale: Allows Carrier to sell network connectivity and services to its entire client base across its full portfolio of data centers.
• Timeline: Parties anticipate entering into a definitive agreement by no later than May 1, 2026, with completion shortly thereafter.
• Conditions Precedent: Receipt of definitive agreement, all necessary approvals, and completion of satisfactory due diligence.
• Fees: No finders' fees are payable by either party.
• Relationship: The transaction is an arm's-length transaction.

Notable Quotes

• "The acquisition of Morewave's network services immediately unlocks a valuable new revenue stream for Carrier, by allowing us to sell network connectivity and services to our entire client base, across our full portfolio of data centres. This is a highly profitable line of business employed by data centre portfolios held across different geographies, and we are thrilled to add this capability and corresponding revenue driver." — Mark Binns, Chief Executive Officer of Carrier