X5 Solutions buys CornerStone Telephone Company

X5 Solutions, which is backed by NewSpring Capital, has acquired CornerStone Telephone Company. Financial terms weren’t announced. Troy, New York-based CornerStone provides local and long distance phone service, high-speed Internet access, VoIP, cloud computing, data center services and business phone systems to customers throughout the northeastern United States.

PRESS RELEASE

SEATTLE–(BUSINESS WIRE)–X5 Solutions, a portfolio company of NewSpring Capital’s dedicated buy and build strategy NewSpring Holdings, has reached an agreement to acquire CornerStone Telephone Company, a New York-based advanced communications solutions provider.

CornerStone, headquartered in Troy, NY, provides local and long distance phone service, high-speed Internet access, VoIP, cloud computing, data center services and business phone systems to customers throughout the northeastern United States.
The acquisition of CornerStone is the next in a recent series of strategic expansion activities to advance X5’s position as a fully integrated, national communications company. In October of this year, X5 announced the acquisition of NovaTel (www.novatelnetworks.com), and in April the acquisition of Switching Concepts (www.switchingconcepts.com), which closed earlier this year.
“CornerStone is a key asset in our national expansion efforts,” said Greg Forrest, CEO of X5 Solutions. “The company has a strong presence, with more than 7,000 loyal, top-quality customers in a geographic region we’ve targeted for expanding our cloud offering. CornerStone has a proven track record of opening and optimizing new markets, offering customers leading technology to serve all their communications needs at competitive pricing. This will immediately contribute to X5’s aggressive growth goals.”
Forrest continued, “The addition of CornerStone’s strong leadership, sales, technical and operations talent is a vital competitive advantage, as is the acquisition of two additional Points-of-Presence and technology fully compatible with X5’s existing network infrastructure.”
Dan Yamin, CEO of CornerStone, said he is looking forward to teaming up with X5’s executive management team to build a nationally recognized organization capitalizing on each company’s strengths and taking the combined entity to a new level of service and innovation.
“The leaders of X5 Solutions saw true compatibility with the network and product offerings of CornerStone, as well as opportunities to grow their expanding portfolio of services and geographic reach to the Northeast,” said Yamin. “CornerStone customers will benefit from the synergies of our organizations and gain access to additional and diverse solutions. We’re excited for this new chapter and what the future holds for us.”
The acquisition is subject to regulatory review and approval and is expected to be completed during the first quarter of 2016.
About X5 Solutions
X5 Solutions is backed by more than two decades of experience in the telecom industry. The company has navigated the changing landscape of providers and communication technologies to deliver diverse solutions to private and public businesses, government agencies and wholesale partners across North America. X5 Solutions’ customer-focused approach and ability to leverage carrier diversity to customize solutions has fueled its success. X5 Solutions offers a complete suite of solutions, including Traditional Voice and Data Services, SIP Trunking, Hosted Voice, Conferencing, Unified Communications and Ethernet. For more information, visit www.x5solutions.com.
About CornerStone
CornerStone Telephone Company is an advanced communications solutions provider, specializing in services for business and enterprise customers. CornerStone has more than 50,000 access lines, providing local and long distance telephone service, high-speed Internet access, VoIP, cloud computing, data center services and business telephone systems. The company services customers around the globe. Established in 2002, CornerStone has more than 110 employees and 10,000 customers. The company is headquartered in Troy, N.Y. with offices in Oneonta, New York City, Poughkeepsie and Richmond, Massachusetts. For more information, visit www.cstel.com.
About NewSpring Holdings
NewSpring Holdings, LLC, NewSpring Capital’s dedicated buy and build strategy, focuses on control buyouts and platform builds, targeting profitable, growing companies seeking a financial partner to better assist them in achieving their goals. NewSpring Capital, based in Radnor, Pa., collectively manages more than $1 billion of committed capital supporting more than 100 portfolio companies across its growth equity, control buyout and mezzanine debt strategies. Combining deep operating knowledge with financial and investing expertise, NewSpring Capital provides growing companies the financial resources, advice, network of contacts and strategic partnerships necessary to be successful. To learn more about NewSpring Capital, please visit www.newspringcapital.com.