In an all-cash transaction, Windstream acquired New-York based competitive local exchange carrier MASS Communications in a $37.5 million deal on Tuesday.
MASS Communications is a privately held telecom network management company that partners with hardware and software vendors and MSPs. It provides managed services -- such as voice, data, security and SD-WAN -- to small to midsized global enterprise customers in the financial, legal, healthcare, technology, education and government segments.
Windstream Communications Inc. (Nasdaq: WIN) initially announced plans to acquire MASS Communications in an FCC filing last December, and the company will now be a wholly owned subsidiary of Windstream (See Windstream Acquires MASS Communications.)
Windstream announced two new service brands this February -- Windstream Enterprise and Windstream Wholesale, and MASS Communications' customer base aligns well with Windstream's strengths as a company, the pair say. Joseph Harding, executive vice president and chief marketing officer for Windstream Enterprise, told Light Reading's Carol Wilson in a recent interview that Windstream's "sweet spot" is midsized to larger companies with multi-location operations in the financial services, retail and healthcare sectors. (See Windstream Rebrands to Challenge Incumbents.)
In addition, Windstream has been building out its software-defined networking capabilities and expanding its business services, SD-WAN portfolio and unified communications-as-a-service (UCaaS) technologies over the last few years to meet the demands of customers undergoing their own digital transformations. (See Windstream Bets on SDN for Biz Success.)
"MASS Communications customers now will have access to Windstream Enterprise's deep portfolio of networking solutions and cloud-based services, including SD-WAN Concierge and OfficeSuite," said Layne Levine, president of Windstream Enterprise & Wholesale, in the announcement.
Levine also noted that MASS Communications CEO Darren Mass has been named president-resale for Windstream's Enterprise & Wholesale business unit. "Darren's collaborative, customer-centric approach to solutions and commitment to a superior customer experience are aligned with our company values," said Levine. "I am confident his leadership of our reseller business will help drive organic revenue growth."
In 2017, Windstream acquired EarthLink for $673 million, as well as unified communications provider Broadview for $227.5 million. (See Windstream Buys UC Provider Broadview and Windstream Buys EarthLink for $673M.)
— Kelsey Kusterer Ziser, Senior Editor, Light Reading