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Birch Creates Giant National Cloud Communications Network with $323 Million Cbeyond Acquisition

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Birch Creates Giant National Cloud Communications Network with $323 Million Cbeyond Acquisition

July 24, 2014
By Laura Stotler
TMCnet Contributing Editor

Building on an acquisition agreement approved by stockholders earlier this month, Birch Communications has finalized its buyout of cloud communications powerhouse Cbeyond (News - Alert), Inc. The combined companies create a giant provider of cloud communications and managed services.

Birch made the all-cash purchase for about $323 million and took Cbeyond’s common stock off the trading listings. The acquisition marks an astonishing 21 buyouts for Birch spanning back to 2006, through which the service provider has been steadily building a nationwide network of services comprising around 200,000 business customers throughout the U.S., Canada and Puerto Rico.

Other noteworthy acquisition targets have included last September’s purchase of valuable assets of Ernest Communications, along with customer and network assets from Lightyear Network Solutions (News - Alert). The company finalized its asset acquisition of Liberty-Bell Telecom last month, and also signed sales acquisition agreements with communication providers EveryCall and Selectel. Birch, which will retain its headquarters in Atlanta, plans to convert Cbeyond’s Atlanta headquarters into a new NOC (News - Alert) in support of customer care, engineering, operations, sales and marketing and finance.

Additional plans stemming from the acquisition include an expansion of Birch’s national IP-based network offering around 31,000 fiber route miles, more than 550 fiber-lit buildings, six data center and 594 network colocations. The company also plans to serve customers throughout their entire business cycles using its new assets. Birch will deliver services to the SMB marketplace as well as enterprises requiring support for multiple offices and data centers.

Edited by Adam Brandt

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