The only consolidator out there that has been competitive with Zayo in terms of raw number of deals since 2006 struck again yesterday. Birch Communications announced an agreement to acquire the client base, accounts receivable, and physical assets of Ernest Communications, bringing their total to nineteen in the past six or so years.
Ernest and Birch were not strangers, as just last May Ernest signed on as a major wholesale customer for Birch in order to expand their reach. Apparently Birch liked what it saw and decided bring the reseller's business under its own umbrella. Following the deal, Birch says it will be providing services to all 50 states, DC, Puerto Rico, and Canada.
The deal comes just a few weeks after Birch's agreement to buy the assets of Lightyear Network Solutions. Earlier this year they raised some cash and promised further deals, and obviously they weren't bluffing. None of their purchases have been huge, but nineteen of them is definitely starting to add up.
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