Fusion closes acquisition of Birch
Transaction Financed through new $680m credit facilities
Cloud services provider Fusion, has said it has closed its previously-announced acquisition of the cloud and business services business of Birch Communications Holdings, Inc.
The acquisition was completed through a merger of a wholly-owned subsidiary of Fusion and Birch.
According to Fusion, the total enterprise value of this transaction was approximately $600m, consisting of approximately 50m shares of Fusion common stock and the refinancing of $444m of Birch indebtedness.
The Birch acquisition was financed through borrowings under Fusion's new $680m senior secured credit facilities, which closed on May 4, 2018. The Facilities include $640m in term loans and a $40m revolving credit facility, which is currently undrawn.
Matthew Rosen, chairman and CEO, Fusion, said: "This marks the beginning of an exciting new era for Fusion, as we now move forward to realise the tremendous potential of the combined company. In bringing the two businesses together, we have created a market-leading Cloud Services company that is positioned for further growth, both organically and through additional strategic acquisitions."
Rosen said the company is confident that Fusion can create significant, long-term value for shareholders by extending its proven strategy as the single source for the cloud across the greatly expanded platform and customer base and leveraging substantially greater scale and resources.
"Our new financing likewise represents another major step toward Fusion's goal of becoming the industry's leading single-source cloud services provider," Rosen continued. "We appreciate the support we received from Goldman Sachs, Morgan Stanley and MUFG as joint lead arrangers, as well as previous lenders to Fusion and Birch who participated in this financing along with a number of new lenders."