Telecommunications company Comstar Technologies has acquired Buffalo, New York-based company Comtel VoIP. Terms of the deal were not disclosed.
This is M&A deal 450 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
Comstar provides advanced telecommunications, managed IT services, physical security and audio-visual solutions. The strategic acquisition of Comtel will allow it to expand its geographic footprint and broaden Comtel’s solution portfolio beyond their current voice offerings, the company said.
Founded in 1990, Comtel provides hosted telephony solutions. Comtel will continue to operate under its current name for the foreseeable future, according to the company.
The Comtel team will join Comstar, according to Comstar president David Johnson.
Comstar Acquires Comtel: Expanding Product Offerings
Johnson commented on the deal:
"Both companies share a fanatical focus on the success of their clients and meeting their ever-evolving needs. Additionally, we feel this region is full of great people and a strong business community, and we are very proud to now be a part of it."
David Adams, President of Comtel VoIP, said:
“We are excited to join the Comstar Technologies Family. Comtel was built by an outstanding and dedicated team with customer service as its top priority. We are looking forward to keeping that philosophy alive with Comstar while also expanding product offerings for our clients.”
Comstar Acquires Comtel: Making a Deal During a Pandemic
The DAK Group, led by Sheon Karol, managing director, with Damir Makic, vice president, served as the exclusive investment banker and financial adviser to Comtel, initiating and managing the acquisition.
Karol commented on the process:
“Closing another transaction during the pandemic was particularly challenging for all parties. This period requires greater precision in focus and execution – we were fortunate to work with partners who shared this approach to success.”
Indeed, the pandemic has caused a slowdown in traditional M&A activity, as ChannelE2E wrote in April 2020.
The same pandemic has caused more people to begin working from home, necessitating the need for more reliable VoIP (Voice over IP) solutions. As a result, VoIP and telephony companies have remained attractive acquisition targets.
