Windstream Acquiring Broadview Networks in $228 Million Deal

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in February and March.**

In a deal with big channel implications, Windstream has signed an agreement to acquire Broadview Networks, the provider of cloud-based UC to SMBs, in an all-cash transaction valued at $227.5 million.

Broadview offers a suite of cloud-based services under the OfficeSuite UC brand. Windstream completed its $1.1 billion merger with EarthLink in February.

Michael Flannery, Windstream’s senior vice president of CLEC SMB, tells Channel Partners that the acquisition makes Windstream a stronger competitor in an attractive, high-growth marketplace.

“By 2020, we expect the unified communications market to exceed over $40 billion with 60 percent of those users in the SMB segment,” he said. “Specific to the partners, Broadview has an excellent partner program and after this transaction closes we expect to be able to leverage their experienced salesforce and nationwide network of agents across our extensive network footprint.”

The transaction is expected to close in the third quarter.

“At the end of the day, I think we do anticipate there will be new opportunities for our partners as a result of this acquisition, which we’ll be able to address once we close,” Flannery said.{ad}

Broadview has a “very unique” proprietary UCaaS offering that will advance Windstream’s product portfolio, he said.

“It will certainly improve our competitiveness and our ability to provide enhanced services to business customers,” Flannery said. “It directly supports our current strategy to provide competitive, secure cloud applications to our customers.” 

“Broadview has been successful transforming its legacy telecom business into a leading provider of unified communications services to businesses that are ready to make the shift to the cloud for their communications services,” said Mike Robinson, Broadview’s president and CEO. “Windstream’s nationwide footprint, extensive portfolio of service offerings, vast distribution and attractive customer base are a natural fit for our strategic direction. We look forward to combining forces with their team to continue expanding our UCaaS business by delivering best-in-class services to customers across the country.”

The boards of both companies unanimously approved the transaction. Broadview shareholders holding a majority of the company’s shares also approved the transaction by written consent.