Tuesday, June 18, 2013

EarthLink to Acquire CenterBeam for $22 Million

Continuing its efforts to transform itself from a pure Internet service provider into an information technology company, EarthLink (NASDAQ: ELNK  ) announced Monday it is buying cloud computing and hosted IT services provider CenterBeam for $22 million. 

California-based CenterBeam provides remote managed IT services primarily to mid-sized businesses, and operates a 140-person IT support center that offers help desk assistance, desktop technical support, and application support services.  

Believing the acquisition will allow the ISP to "fast track" the implementation of its IT services product development while also providing "expertise, scale, and redundancy," EarthLink Chairman and CEO Rolla P. Huff said: "CenterBeam's advanced set of products, tools, and processes will enable us to quickly bring a robust set of remote managed IT Services and collaboration services to market."

EarthLink intends to offer CenterBeam's cloud computing portfolio, which  provides a full suite of collaboration services, along with its nationwide hosted voice platform, through its existing distribution channels.

The transaction is structured as an asset purchase and is expected to close early in the third quarter, subject to customary closing conditions.

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