Birch Communications CEO Vincent M Oddo

Birch Communications CEO Vincent M. Oddo

Birch Communications Finalizes Cbeyond Acquisition

Birch Communications has added Cbeyond in an all-cash transaction valued at $323 million. Cbeyond's Atlanta headquarters and operations facility will become Birch's third operations center.

Atlanta-based cloud services provider (CSP) Birch Communications has finalized the acquisition of Cbeyond for approximately $323 million.

This transaction was first announced in April and creates a CSP and managed service provider (MSP) with roughly $700 million in annual revenue.

"The combination of Cbeyond and Birch is a long-term commitment to our customers to provide a broader array of services priced and designed to make their business successful," Birch CEO Vincent M. Oddo told Talkin' Cloud. "As of today, our customers are served by a company with strong financial resources and an expanded network that will provide them with access to improved communications, cloud and managed IT services."

Cbeyond is a "technology ally" for small and medium-sized businesses (SMBs) that delivers cloud services and communications.

Birch noted the Cbeyond acquisition benefits both companies and their customers in several ways, including:

  • Creating a nationwide communications provider that supports approximately 200,000 business customers located in all 50 states, the District of Columbia, Canada and Puerto Rico
  • Developing a nationwide IP-based network covering 22 states and Washington DC, with approximately 31,000 fiber route miles, over 550 fiber-lit buildings, 594 network collocations and six data centers
  • Serving customers at every stage of their business lifecycle

"This acquisition creates a truly unrivalled communications and technology services powerhouse that can serve businesses at every stage of their lifecycle," Oddo in a prepared statement. "We are building on our heritage of redefining the way businesses are served and supported and are well-positioned to meet the accelerating demand for broadband and cloud-based services -- competitively, strategically and financially."

Cbeyond's common stock will no longer be listed for trading on NASDAQ as a result of the agreement, and its Atlanta headquarters and operations facility will become Birch's third operations center.

Birch said it will maintain its Atlanta headquarters as well.

A complete FAQ about Birch's acquisition is available here.

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