Canadian cloud and carrier-neutral data center provider eStruxture plans to acquire all eight Canadian data centers of managed service provider Aptum Technologies.
The company will also take over its colocation customers and hire associated staff.
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Finally bringing the company to Toronto
The deal, terms of which were not disclosed, will see the company gain five data centers in Toronto, two in Montreal, and one in Vancouver.
This brings the company's total footprint to over 600,000 square feet (55,700 sqm) of data center space and an IT capacity of 100MW - having gained an additional 40MW from the acquisition.
eStruxture will also gain a foothold in the 151 Front Street West, Toronto, and 555 Hastings, Vancouver carrier hotels.
"If you look at our geographic map, there was an obvious hole about 300 miles/500 kilometers from Montreal, and that's the Toronto market, the commercial and telecom hub of Canada," eStruxture CEO Todd Coleman explained to DCD.
"We had been looking to do something in Toronto for quite some time, we've looked at everything from Greenfield, Brownfield, organic, and inorganic growth into the market."
Last summer, Aptum's fiber business was acquired by the Digital Colony-backed Beanfield. "It seemed like Aptum wanted to focus on their core competencies. Meanwhile, colocation and all things Canadian data centers really fits into our core competency, so we reached out. When we looked at it, it was just was so blatantly obvious that it fit perfectly within our platform."
Aptum will stay on as a customer, taking up less than five percent of the data centers' capacity. "They're going to be an important and fairly consequential strategic customer, but in the grand scheme of our capacity, not a significant [user of capacity] at all," Coleman said.
To help pull off the acquisition, eStruxture is currently going through a fundraising round, expected to close in the coming weeks.
"We're backed by some great investment groups, the Caisse de dépôt et placement du Québec, which is the second-largest pension fund in Canada, and Fengate Capital out of Toronto," Coleman said. "And so they've been super supportive and excited to put more money behind the eStruxture platform."