Birch Communications Inc has confirmed a previously announced agreement to acquire select assets and customers of Primus Telecommunications Canada Inc, a full-service telecommunications services provider. No financial terms were released. The deal, which is expected to close in the second quarter, will help the Atlanta, GA-based Birch expand its services footprint to include all of the major cities in Canada, the company said. As reported by PE Hub Canada in January, Etobicoke, Ont.-based Primus obtained creditor protection earlier this year. The company was acquired by U.S. private equity firm York Capital Management in a US$129 million deal in mid-2013.
Birch to Purchase Assets of Primus Telecommunications in Canada, U.S. and P.R.
Company expands customer base and service footprint with purchase of select assets of one of Canada’s largest independent, full-service, telecommunications service providers
ATLANTA, March 14, 2016 /PRNewswire/ — Birch Communications, Inc. (“Birch”), a leading nationwide provider of communications, network and cloud services to small, mid-sized, enterprise and wholesale businesses, announced today its recent agreement to purchase select assets and customers of Primus Telecommunications Canada Inc. (“Primus”), one of Canada’s largest independent, full-service, telecommunications service providers. The closing is expected in the second quarter of 2016 and this transaction will mark the 28th asset purchase for Birch.
Primus’ more than 250,000 business and consumer customers will significantly expand Birch’s service footprint. The transaction will also include 20,000 customers in the United States and Puerto Rico. In addition, Birch and Primus complement each other from a product perspective, each offering industry-leading broadband internet, cloud-hosted PBX, dedicated data access, local phone, long distance and a variety of wholesale solutions.
“This transaction demonstrates our continued commitment to grow our service territory, product-set and customer base,” said Vincent Oddo, President and CEO at Birch. “Primus customers will benefit from being part of a larger service provider with a strong commitment to award-winning customer care, and Birch customers will benefit from a new, significantly larger service territory. With the addition of the Primus assets, Birch expects that a significant portion of its revenue in 2016 will come from its fast-growing fiber and managed services segments.”
Michael Nowlan, Chief Executive Officer of Primus said, “We are excited for Primus customers as this transaction offers them a broader array of products with a wider geographic reach, thus bringing an extremely competitive choice to the marketplace. Our customers and partners will seamlessly transition to Birch and continue to enjoy enterprise-class service.”
“We are excited about the expansion of our service footprint to include all of the major cities in Canada. A significant portion of our current enterprise customers do business in Canada and are interested in expanding their existing services due to our larger presence. Birch will be one of a select group of service providers who can serve businesses across both the U.S. and Canada. This provides our customers with a unique opportunity to consolidate their operations with us,” said Christopher Ramsey, Senior Vice President and Chief Sales Officer. “Our ability to attract new customers, particularly enterprise customers, has just grown exponentially. We look forward to leveraging our growth on both sides of the U.S.-Canada border.”
Birch marked another year of excellence with its sixth placement on the Inc. 500|5000 list in 2015, a repeat listing on the Atlanta Business Chronicle’s List of the 50 Top Private Companies in Atlanta, and the prestigious “Center of Excellence” recognition by BenchmarkPortal. Birch is currently celebrating its 20th year in business and has a rich history of providing enterprise-class technology to businesses of all sizes.
About Birch Communications
Birch Communications, Inc. is a leading communications, network, cloud and IT solutions provider celebrating 20 years in business (1996-2016). Recognized for exceptional customer experience, Birch delivers cost-effective solutions that assist small, mid-sized, enterprise and wholesale businesses to increase their productivity. Its industry-leading product portfolio is available nationwide and includes Metro-Fiber, Metro-Ethernet, unified communications (UC), hosted phone systems, hosted data centers, and hosted file storage services. For more information, visit birch.com.
About Primus Telecommunications Canada Inc.
Primus is the largest national independent telecommunications service provider in Canada. Primus offers a wide selection of business and consumer telecommunications services including Internet, Home Phone, Long Distance, VoIP, Cloud-Based Business Phone Systems (Hosted PBX), Dedicated Data Access and IP connectivity solutions. In the United States, Primus provides reliable and affordable digital home phone (VoIP) service under the Lingo brand. Primus was founded in 1997 and has more than 450 employees located in offices across Canada including Vancouver, Toronto, Ottawa, London and Edmonton. For further information, visit primus.ca.
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