Network M&A: Windstream Acquires MASS

Windstream has found another target for its consolidation efforts, The company has announced the acquisition of MASS Communications.

MASS Communications is based in New York and serves enterprises across a range of verticals with a range of voice and data solutions. MASS Communications CEO Darren Mass will stay on as President-Resale for Windstream’s Enterprise & Wholesale business unit.

The deal cost Windstream $37.5M in cash, which represents a multiple of 4x TTM OIBDAR inclusive of the synergies to be derived over the next 90 days. So it’s not a huge deal from a revenue or earnings standpoint.

But like Windstream’s other CLEC and managed services targets over the past few years, such as EarthLink and Broadview, it isn’t costing them all that much much in terms of raw valuation. MASS Communications’ revenues will, after integration, live more comfortably on Windstream’s higher margin network infrastructure.

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Categories: CLEC · Managed Services · Mergers and Acquisitions