Telesystem Adds to Managed Security Portfolio with VoxNet Acquisition

Telesystem is buying VoxNet, adding the MSP’s Fortinet product set and associated personnel to its managed security portfolio.

VoxNet provides unified communications, managed security services and internet access to end user customers in 38 states.

Telesystem is a nationwide provider of communication, collaboration, infrastructure and managed security solutions, with a focus on multisite, multiproduct, fully managed solutions. The company’s nationwide network includes more than 40 points of presence, more than 100 network-to-network interface (NNI) appearances with other providers, and DDoS mitigation.

Bruce Wirt is Telesystem’s executive vice president and chief business development officer. He said the innovation of Telesystem’s managed security suite has fueled the company’s growth and popularity. Those managed services include enhanced analytics and Wi-Fi monetization.

Telesystem’s Bruce Wirt

“Partners choose Telesystem for complex multisite, multiproduct solutions because of our white-glove implementation and 24/7/365 never-outsourced support,” he said.

VoxNet an Attractive Acquisition Target

Telesystem saw “tremendous” organic growth during the pandemic from customers investing in remote work solutions, workplace analytics and managed security, Wirt said.

“At the same time, the industry as a whole is pressured with the reality of legacy voice and data products being replaced by VoIP and SD-WAN solutions that have a lower associated monthly recurring revenue,” he said.

This and future acquisitions allow Telesystem to focus on its organic growth strategy, Wirt said. It can also manage churn associated with revenue write-downs by acquiring organizations with only few remaining legacy products.

“VoxNet was very attractive in that regard because they had very few customers using legacy voice products,” he said. “Their customer base was heavily weighted in unified communications and managed security.”

VoxNet was an division of Helm Partners.

“Helm is a top Intelisys and Avant partner, and will continue to operate as a technology advisory firm after selling the assets of VoxNet to Telesystem,” Wirt said.

VoxNet’s partners will continue to get commissions on the customers that Telesystem acquired, he said.

Investigating Acquisitions

Telesystem’s inorganic growth strategy includes pursuing acquisitions of, and strategic partnerships with, UCaaS resellers, IoT firms, and MSPs across the United States, Wirt said.

Telesystem’s financial strength benefits organizations that may have struggled during economic uncertainty. The company came out of the pandemic in a strong position to supplement its organic growth with strategic acquisitions, he added.

The acquired customers get enhanced functionality through Telesystem’s unified communication platforms, Wirt said. They also benefit from the added geographic redundancy from Telesystem’s low-latency nationwide network. Moreover, they receive access to advanced SD-WAN and managed security products.