Birch Communications buying Cbeyond for $323M
April 21, 2014 09:30 AM | 279 views | 0 0 comments | 4 4 recommendations | email to a friend | print
ATLANTA (AP) — Birch Communications Inc. is buying technology and communications equipment provider Cbeyond for about $323 million.

Cbeyond announced in November that it was considering its strategic options. Its shares surged on word of the deal.

Birch provides IP-based communications, cloud and managed services to businesses in all 50 states, the District of Columbia, Canada and Puerto Rico. Its services include voice, broadband, Internet access, hosted services, managed services, wireless voice, wireless data and other communications, cloud and managed services.

Cbeyond Inc. stockholders will receive between $9.97 and $10 per share. That translates to an approximately 41 percent premium over the company's Thursday closing price of $7.07.

Shares of Cbeyond surged $2.77, or 39 percent, to $9.85 in premarket trading Monday about 30 minutes ahead of the market open.

Both Atlanta-based companies' boards unanimously approved the deal, which is expected to close within six months.

The transaction still needs approval from federal and state regulators and Cbeyond stockholders.



Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides