Windstream Inks Deal to Acquire Broadview Networks for $227.5 Million
Windstream (Windstream Holdings, Inc., NASDAQ: WIN: $5.52), a premier business network and cloud services provider, has entered into a definitive agreement to purchase Broadview Networks Holdings, Inc., a New York-based provider of business communication services to small and medium-sized businesses in an all-cash transaction valued at $227.5 million.
The acquisition, announced this past month, is expected to strengthen Windstream’s expansion in the cloud market and yield up to $30 million in additional annual revenue.
Windstream Continues to Snap up Competitors
Windstream is no stranger to acquiring and combining forces with its competitors in order to expand its presence and national footprint. Since 2007, Windstream has been bringing competitors under the company umbrella. Some of the companies it has acquired over the past decade include CT Communications, D&E Communications, Iowa Telecom, Nuvox, Q-Comm Corporation, Hosted Solutions, and PAETEC Holding Corp. In February, the company announced that its merger with Atlanta-based telecommunications company, EarthLink, has finally been completed. Now, with its latest acquisition of Broadview Networks, the company believes that it will further improve its competitiveness in the Unified Communications (UC) market.
Tony Thomas, President and Chief Executive Officer of Windstream, had this to say about the deal:
"Broadview’s unique, proprietary unified communications solutions will advance our product portfolio, improving our competitiveness and ability to provide enhanced services to business customers. The transaction also will enable us to leverage Broadview’s experienced salesforce and cloud operations across our national footprint.”
Mike Robinson, President and Chief Executive Officer of Broadview, also commented on the latest move:
"Broadview has been successful transforming its legacy telecom business into a leading provider of unified communications services to businesses that are ready to make the shift to the cloud for their communications services. Windstream’s nationwide footprint, extensive portfolio of service offerings, vast distribution and attractive customer base are a natural fit for our strategic direction. We look forward to combining forces with their team to continue expanding our UCaaS business by delivering best-in-class services to customers across the country."
The transaction was unanimously approved by the boards of both companies and is expected to close in the third quarter of 2017.
Building a Bigger Presence in the UC Market
Based in Rye Brook, New York, Broadview Networks is a trusted provider of cloud-based communications solutions to small and medium-sized businesses (SMBs). The company offers a broad suite of cloud services under its OfficeSuite UC brand, a 100% cloud-based UC that offers unmatched security, mobility, and control. The platform also offers integrations with popular business applications such as Microsoft Dynamics 365.
Although the Broadview deal is a much smaller acquisition compared to Windstream’s $1.1 billion merger with Earthlink, industry experts believe that the Broadview deal is expected to give Windstream expanded cloud capabilities in markets that favor managed solutions. In addition, Broadview customers will be able to take advantage of Windstream’s larger facilities-based network, as well as new capabilities such as SD-WAN and Ethernet services.
But how the Windstream-Broadview Networks deal could impact the UC space and its target market in the long term is hard to say. With a number of companies rolling out UC offerings and signing mergers, acquisitions, and partnerships in the cloud communications space, the combined Windstream-Broadview Networks company must act fast in order to differentiate themselves from competitors. Nevertheless, it is interesting to see what the newest partnership will bring to the table once the deal is finalized later this year.
For more details on the acquisition, please visit Windstream’s or Broadview Network’s website.
About Windstream
Windstream (Windstream Holdings, Inc., NASDAQ: WIN: $5.52) is a FORTUNE 500 company, providing advanced network communications and technology solutions. They cater to businesses, enterprise organizations, as well as wholesale customers across the U.S. The company’s data, cloud solutions, unified communications and managed services are designed to meet the growing, unique needs of businesses of every size.
About Broadview Networks
Broadview Networks offers local and long-distance voice and data communications, patented hosted VoIP systems, data services and a full suite of managed and professional services to over 250,000 users nationwide. Their range of innovative and award-winning products include OfficeSuite UC, OfficeSuite HD Meeting, OfficeSuite Cloud Computing and Network Voice & Data services.
