(Reuters) - Peer 1 Hosting said it will buy NetBenefit Ltd, a unit of NBT Ltd for $38.5 million in cash as the IT hosting provider consolidates its position in the United Kingdom.
The company said the deal is expected to add to its earnings per share immediately.
Peer 1 said it will fund the acquisition with cash on hand and its existing credit facilities.
Shares of Peer 1 closed at C$2.22 on Tuesday on the Toronto Stock Exchange.
Reporting by Ankur Banerjee in Bangalore; Editing by Supriya Kurane