MSP Cbeyond Bulks Up Cloud Services With Two Acquisitions
Both companies are privately held, focus on SMs, and bring everything from managed virtual servers to cloud-based PBX and SIP trunking capabilities to Cbeyond's portfolio.
Cbeyond, based in Atlanta, caters to 55,000 SMB customers, and the acquisitions mark its expansion into full-blown cloud services. The buys will expand Cbeyond's territory beyond an existing 14-city footprint. It also takes over MaximumASP and Aretta's reseller channels and gains a 33,000 square-foot data center.
"We believe these acquisitions will provide significant growth opportunities, leverage our existing channels of distribution, and expand our innovative technology and expertise," said Jim Geiger, Cbeyond CEO, in a statement. "In addition, we are excited to bring on board a team of talented people and a first-class technical platform and data center."
"We believe that small businesses will be increasingly outsourcing their IT hardware and services to the cloud and that Cbeyond can play a key role in enabling this trend," Geiger added.
According to Cbeyond, the combined fiscal 2010 revenue of the acquired companies is expected to be about $12 million. Cbeyond will pay up to $40 million cash in the deal, with $33 million paid up front and the remainder paid out "upon achieving certain future milestones," according to the statement.
Cbeyond was named to CRN's list of the 75 Coolest Telecom Service Providers this year, ranked No. 118 on this year's VAR 500, and was also recognized as the 11th fastest-growing company in Georgia by the Atlanta Business Chronicle.