Information Management | Atlanta, GA | Corporate Acquisition
Telecom company Fusion has agreed to acquire the cloud and business services division of Birch Communications in an all-stock transaction, with Reuters reporting the deal will create a combined entity worth about $950 million, including debt. Birch shareholders including Birch Equity Partners will trade their position in the cloud unit, valued at about $280 million, for an equity stake in Fusion. The price represents about 5x the adjusted EBITDA of the acquired Birch division, a provider of cloud services to businesses in North America. Fusion stock skyrocketed 86% on Monday.