Birch Communications, an Atlanta-based managed service provider (MSP), will acquire cloud services provider Cbeyond (CBEY). The transaction has been unanimously approved by the boards of directors of both companies and is expected to close within six months.

Founded in 1999, Cbeyond delivers cloud services for small and mid-sized businesses and earned over $488 million in revenues in 2012. According to a press release, Birch will acquire Cbeyond in an all-cash transaction valued at approximately $323 million.

“This transaction will create a nationwide communications and technology services powerhouse and significantly advances our strategy to drive top-line revenue growth by enhancing the premier communications, cloud and managed services that are available to our business customers,” Vincent M. Oddo, President and CEO of Birch, said in a prepared statement.

So what does the transaction mean for Birch and Cbeyond? Birch said that the transaction benefits both of these companies by:

Here’s what James Geiger, founder and CEO of Cbeyond, had to say about the transaction in a press release:

“After a thorough six-month strategic review process in which we evaluated a wide range of alternatives in addition to a sale, the Cbeyond board of directors determined that this all-cash transaction with Birch maximizes stockholder value through an attractive premium. We have been strengthening the Cbeyond franchise with our 2.0 transformation; the wider reach with Birch enables the combined companies to increase service levels with a broad array of products to a larger number of customers.”

Cbeyond stockholders will receive between $9.97 and $10.00 per share in cash. Cbeyond said that the exact amount will be determined based on stock transactions relating to previously granted stock awards to employees that occur after it executes the final agreement.