Managed Services Acquisition: Birch Buys Cordia Communications

Another managed services-related acquisition surfaced this week. The latest deal: Birch Communications, an IP telecommunications and managed services provider (MSP) for SMBs, acquired all U.S. competitive local exchange carrier (CLEC) assets of Cordia Communications Corp., which includes My Tel Co, Inc. and Northstar Telecom Inc.

The Cordia acquisition is still pending approval from the FCC and state regulatory authority. If all goes well, Birch’s acquisition of Cordia should be finalized during the early fourth quarter of 2011. Birch, based in Atlanta, Ga., would bring on 55 new business clients and residential and broadband access lines that span 24 states through the acquisition. In a prepared statement, Birch Communications President and CEO Vincent Oddo called the deal a “tuck-in” synergistic acquisition.

Acquisitions have become the norm for Birch. The company has acquired 12 different companies within the last five years. The acquisitions have expanded Birch’s service range from its Georgia headquarters to 38 states. The Cordia deal stands out because Birch plans to bring  previously outsourced jobs back into the Untied States. Birch will create a total of 50 new U.S. jobs in its Macon, Ga. and Emporium, Kan. data centers, the company predicts.