Windstream Holdings Inc. has reached a deal to purchase Broadview Networks Holdings Inc., an Internet-based telephone service provider, in an all-cash transaction for approximately $227.5 million. The target advances Windstream’s product portfolio and allows the buyer to leverage Broadview’s cloud operations and sales force, according to Windstream CEO Tony Thomas.

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Founded in 1996, Broadview dubs itself as a “virtual phone system” that provides voice over Internet protocol (VoIP) services to small and medium-sized businesses. The Rye Brook, New York-based target services companies in the Northeastern and Mid-Atlantic U.S. across a variety of industries, including: healthcare and dental, financial services, retail, education and government, and real estate.

Broadview targets “businesses that are ready to make the shift to the cloud for their communications services,” according to Broadview CEO Mike Robinson. “Windstream’s nationwide footprint, extensive portfolio of service offerings, vast distribution and attractive customer base are a natural fit for our strategic direction.”

Windstream is a Little Rock, Arkansas-based provider of network communications for residential homes and businesses across the U.S. The target offers bundled high-speed Internet, home phone, digital television, and data center services. Windstream expects to realize approximately $30 million in annual operating synergies within two years.

Technology companies have become coveted targets and a driving force for overall M&A, especially as the demand for streaming and mobile capabilities is shifting how millennials access content. Related tech deals include: Tessera Holding Corp.’s (Nasdaq: TSRA), through subsidiary DTS Inc. (Nasdaq: DTSI), purchase of smart phone app developer All In Media; Qualcomm Inc.’s (Nasdaq: QCOM) $47 billion agreement to purchase NXP Semiconductors NV (Nasdaq: NXPI) to expand beyond the smartphone market; Twitter’s (NYSE: TWTR) acquiring Magic Pony Technology to improve video and image quality in tweets; and AT&T Inc.’s (NYSE: T) purchase of video content company Quickplay Media Inc. from Madison Dearborn Partners for the company’s Internet video streaming service.

Houlihan Lokey Inc. (NYSE: HLI) and Jefferies LLC are acting as financial advisers to Broadview Networks, while Willkie Farr & Gallagher LLP is serving as legal counsel.

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Kamaron Leach

Kamaron Leach

Kamaron Leach joined SourceMedia in 2016, serving as Reporter of Mergers & Acquisitions. Kamaron writes the Finance Finesse column about investment banking and lending, and also covers the media and entertainment sector.