Fusion buys Birch's business services, as more companies migrate to the cloud

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Fusion Telecommunications International Inc. (Nasdaq; FSNN has agreed to acquire Birch Communication's cloud and business services division for about $280 million. The deal does not include Birch's legacy consumer and single-line business customers.

Birch's cloud computing divisions helps businesses in the constuction, financial services, healthcare and restaurant sectors with data storage and and email hosting. New York-based Fusion provides cloud services for businesses, including voice communications.

Fusion CEO Matthew Rosen says the acquisition will help meet customers' increasing demand for an "end-to-end experiences that is reliable as well as efficient." Separately, Fusion says it will exit its carrier services business before the deal with Birch closes.hat is reliable as well efficient." The combined company will have about $575 million in annual revenue and expect to serve more than 150,000 customers inlcluding: Burger King, Chipotle Mexican Grill Inc. (NYSE: CMG) and Major League Baseball.

Tech companies have been attractive targets, as more business look to migrate their services and products to the cloud. Recent acquisitions include: Accenture plc's (NYSE: CAN) purchase of DayNine; Genereal Electric Co's purchase of ServiceMax; and Windstream's deal for Broadview Networks.

FTI Consulting, Greenberg Traurig LLP and Drye & Warren LLP are advising Fusion. Moelis & Co. (NYSE: MC), Jones Day and Cahill Gordon & Reindell LLP are advising Birch. Separately, Fusion says it will exit its carrier services buisness before the deal with Birch closes.

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