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Fusion Telecommunications Int’l, Inc. (NASDAQ:FSN) announced recently that it has entered into an agreement to purchase the Cloud and Business Services unit from the Birch Communications, Inc., which is currently the Birch’s leading revenue generator unit. The transaction will close before the end of the year which is subject to approvals and other terms and conditions.

The deal is expected to broaden Fusion’s customer base and make it the largest cloud service provider across the US which has over 150,000 business consumer bases, 30 data centers, and a network covering more than 31,000 miles of the fiber network.

The combined customer base would demonstrate the strongest fundamentals that will persistently increase the company revenues. Furthermore, there will be numerous opportunities for growth through cross-selling and up-selling of comprehensive cloud and business services to both the existing and potential consumers.

According to the agreement, Fusion will manage the combined company. But Birch’s Equity Partners LLC and its majority owner will obtain 75% shares of the new company, while Fusion shareholders will remain with 25% only. The new company anticipates making the annual revenue of over $575 million.  However, the deal does not include the Birch’s legacy customer base and the single-line business enterprises as they have low profitability rates.

The acquisition will enable Fusion to fully integrate its cloud services on a single platform which will greatly solve its complex challenges of shifting to the cloud. In addition, the acquisition is a major step of making Fusion the leading provider of single-source cloud services to corporate customers.

According to Matthew Rosen, the CEO at Fusion, customers are increasingly demanding high-quality cloud and business services that are efficient, reliable, and innovative. Therefore, with the combined efforts and resources, the new company is well positioned to meet the needs and requirements of its customers and shareholders.

The combined effort will transform Fusion into the top-notch cloud services providers across the North America region and will establish a strong platform that encourages both organic growth and strategic purchases in the near future.

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