Comcast Business Buying Nitel in Enterprise Expansion

Comcast Business just announced its intent to buy network as a service provider and carrier aggregator Nitel.

The MSO on Wednesday that it is buying Nitel for an undisclosed sum from Cinven, Nitel's private equity investor. The deal strengthens Comcast Business' up-market capabilities and its managed services, and it also brings in some 6,000 customers. It's the cable company's second acquisition of a managed network services provider in three years. Comcast bought Masergy in 2021.

“Nitel is a dynamic player in managed network services, and its addition to our portfolio will strengthen our capabilities in advanced network, cloud and cybersecurity solutions,” Comcast Business president Edward Zimmermann said. “With Nitel, we’re poised to deliver even greater value to our customers, empowering businesses with the tools they need to succeed now and in the future.”

Cinven bought a stake in Nitel in 2021, prompting a wave of new investment in the Chicago-based company. The company added Margi Shaw as its CEO, acquired Hypercore Networks and WAN Dynamics, and invested in its channel routes to market.

“I am incredibly proud of our company’s continued growth and momentum, and we are excited to continue to accelerate as part of Comcast Business,” Shaw said. “Together, we can provide world-class and comprehensive connectivity technologies and services to enterprises of all sizes.”

Related:Comcast Business Acquiring Masergy to Bolster Enterprise, SD-WAN Capabilities

The deal must first meet regulatory approval.

Nitel Acquisition: Channel Impact

Tech Advisor Services partner Barry Bazen has been working with Nitel. He said the news came as a surprise to him.

Tech Advisor Services' Barry Bazen

"Whenever there is [private equity] money involved, a sale is always on the table. That said, I am a little shocked," he told Channel Futures. "Worried for my larger clients; they knew that I had solid relationships with their executive team, all the way to Margi. Part of the attraction of going to Nitel was moving service away from 'the big guys' where CX suffered, unless they were Fortune 100. I also feel for my day-to-day contacts there, as the culture shock is going to be significant."

The deal notably would bring Nitel channel leader Jim Glackin back to Comcast Business. Glackin was leading Masergy's channel when Comcast Business bought it. JS Group CEO Janet Schijns urged Comcast Business to harness Glackin's expertise going forward.

JS Group's Janet Schijns

"Partners have recently voiced concerns about a growing trend where companies like Comcast Business appoint channel leaders who lack meaningful channel experience. While these leaders are undoubtedly talented and intelligent, they often lack a deep understanding of the channel’s nuances, leading to decisions that could inadvertently harm partner businesses. Comcast Business' acquisition of Nitel presents a strategic opportunity to address these concerns," Schijns told Channel Futures. "Beyond the obvious benefits of expanded network capacity and revenue, Comcast Business can capitalize on Nitel's experienced and well regarded channel chief Jim Glackin and channel leaders by integrating them into pivotal roles within the channel go-to-market strategy of the combined firm. Doing so would not only help to further build trust with partners but also set the stage for accelerated channel growth."

Related:Nitel Takes Private Equity Investment from London Company, Pursues Organic, Inorganic Growth