From The Expert Feature Article
January 22, 2013

Hosting Provider Intermedia to Acquire MSP and Cloud Services Provider Telanetix

A $55 million deal that signifies a major step in uniting the managed service provider (MSP) and cloud services spaces was announced today. Third-party Microsoft (News - Alert) Exchange hosting provider Intermedia has entered into a definitive merger agreement to acquire MSP and cloud-based communications solutions provider Telanetix (News - Alert), which is doing business as AccessLine.

When the deal is complete, Intermedia, which is already the world's largest third-party hosted Exchange provider, will become one of the largest U.S. providers of cloud voice and hosted PBX (News - Alert) services for SMBs. The acquisition is the latest move by major MSP and cloud players to unite their offerings, narrowing the gap between the two arenas to create a carefully and fully managed cloud services experience.

The SMB market is the primary target for AccessLine's cloud-based voice services, which are delivered through an efficient, carrier-grade network. The MSP's products include a cloud-based business VoIP phone service marketed as hosted PBX, a SIP trunking service and modular, cloud-based individualized services. They are sold through both direct and indirect channels.

Those specialized voice services will strengthen and broaden Intermedia's (News - Alert) existing portfolio of integrated cloud services, which are managed through the company's HostPilot ControlPanel. The company's existing services include hosted Exchange, hosted PBX and cloud server, which are all closely managed and delivered from the company's data centers. By maintaining close control of the managed services as well as the delivery mechanism through the cloud, the company is able to guarantee enterprise-grade security and 24/7 customer care. Intermedia also plans to take advantage of AccessLine's telecommunications experts to develop new products, opportunities and partnerships.

"This transaction enables us to further execute on our Office in theCloud vision of an integrated suite of cloud services for small and medium-sized businesses and the channels that serve them," said Phil Koen, chairman and CEO of Intermedia. "With AccessLine, we are gaining an outstanding team of about 100 talented individuals with significant, successful experience developing and delivering next-generation hosted voice services that will meet the rapidly evolving communications needs of our customers and partners."

The merger agreement includes Intermedia's assumption of about $13 million in debt and liabilities, and is subject to potential purchase price adjustments. It will be financed through a bank syndicate with additional equity commitments being provided by Intermedia's existing investors.

"Intermedia has become a fast-growing, innovative, and market-leading cloud services platform provider," said Doug Johnson (News - Alert), CEO of Telanetix and AccessLine. "As such, this transaction will enable our 40,000 customers and partners to have access to an even broader suite of enterprise-grade cloud services, including hosted Exchange, cloud server, security, data management, and more. We expect that our customers and partners will also benefit from our greater operational, development, and financial resources enabling us to continue with our commitment to deliver services of the highest quality and reliability. And, we plan to continue the expansion of our cloud based voice products and feature set."

Edited by Brooke Neuman