Network service provider Lingo Communications is acquiring two firms -- Impact Acquisition LLC and TNCI Operating Company LLC, collectively known as Impact Telecom. The deal creates one of the largest network service providers in North America, the companies say. Financial terms were not disclosed.
The acquisition includes Impact’s customers, operations, and network infrastructure. Lingo says the deal will add around $22 million to its annual free cash flow immediately after it closes. Impact also brings with it more than 25 years of experience and more than 150,000 business, carrier, and residential customers.
The newly combined company will serve approximately 270,000 SMB, carrier, and consumer customers with its three Internet Protocol-based networks, according to the company.
The company is calling the acquisition a major milestone in its strategy to become the leading North American network service provider for SMB, carrier, and consumer customers. “This transaction will provide a robust platform from which to pursue additional value-enhancing initiatives including strategic acquisitions," said Vincent M. Oddo, president and chief executive officer of Lingo.
"The combination of Impact and Lingo is extremely symbiotic and a very natural fit," added Chuck Griffin, CEO of Impact Telecom. "The commitment to network integrity has earned the trust of both national and international top carriers and will continue to serve as the core infrastructure for the cumulative company. We are highly committed to our distribution channels and this builds even greater width of products to help us serve the SMB and consumer markets."
Private equity firm Birch Equity Partners reorganized Birch Communications Holdings into the Lingo business in May 2018. Lingo serves all 50 U.S. states, and works closely with Broadsoft and Cisco Systems, among other partners.
