Windstream today announced the cash acquisition of Broadview Networks for $227.5 million, immediately adding a cloud-based unified communications service capability to what it can offer its business services customers.

Windstream Communications Inc. (Nasdaq: WIN) has been building up its regional and national business services portfolios in recent years, and Broadview Networks Holdings Inc. adds a suite of UC services, aimed primarily at small to midsized businesses, that it successfully moved to a cloud-based platform under its MyOfficeSuite UC brand.

The transaction, which is all cash, has been approved by the boards of both companies and is expected to close in the third quarter of this year. Windstream says it will finance the deal from cash reserves and its available revolving credit capacity.

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The Broadview deal fits with Windstream's strategy of targeting midsized businesses, something it did earlier this year with its SD-WAN launch. The company has a national fiber footprint that it has been building out as well, and strong regional local plays where it is the incumbent service provider. (See Windstream Targets Mid-Market With SD-WAN.)

Broadview's MyOfficeSuite product uses the company's proprietary business phone system technology to deliver voice, video conferencing and calling, mobile communications and integrated messaging. The service integrates company-wide chat, access to popular cloud services and VoIP offerings such as Skype, contact center and customer portal for self-management and ease of access to all services. By being cloud-based, MyOfficeSuite allows businesses to link employees on any device, including mobile devices, to all services, including presence and chat.

— Carol Wilson, Editor-at-Large, Light Reading