Can databases with different collations get along on one server?

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So I have two SQL Servers at the moment, both 2012 and both running separate systems.

One of these servers runs on a collation of latin1_general_bin and the other runs with latin1_general_ci_as, ideally I'd like to shut one of these servers off and move all the systems to one place.

I know this can be done technically, however I was wondering if this was a good idea? Will I be causing myself more problems down the line?

Both databases are transactional based and are defined by external parties so cannot have their collation changed. If I were as to do this, would it be better to have the server collation set as latin1_general_bin or latin1_general_ci_as? I'm thinking that the case sensitive option would be better as queries would still run against case insensitive databases whilst case insensitive queries would need to be carefully managed

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