Telecom cloud, Mergers and Acquisitions, Content

Canadian Telco Distributel Acquires Primus From Fusion Connect

Canadian communications provider Distributel has acquired Primus, a wholly-owned subsidiary of Fusion Connect. The amount of the all-cash deal was not disclosed.

This is M&A deal number 54 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

The deal will position the newly combined entity as one of the largest competitive telecommunications providers in Canada, Distributel said.

Founded in 1988, Distributel provides a range of business, wholesale, and residential communications services. Primus will be merged into Distributel’s business and the combined company will continue to serve Primus’ customers, strengthening its existing distribution channels. Distributel will gain a cloud-based business phone system, a cable footprint, a portfolio of access services, and call screening technology.

Distributel is a Microsoft Solutions Partner and a Cisco PMP (Personal Multiparty Plus).

Distributel Acquires Primus: Merging Two Teams

Brian Crotty, CEO, Fusion Connect
Brian Crotty, CEO, Fusion Connect

Brian Crotty, CEO of Fusion Connect, commented on the sale:

"This transaction further focuses the Fusion Connect team on our strategic goal of enabling mid-market and enterprise companies in the U.S. with cloud communication, collaboration, security, and network management platforms that enhance their competitive position. I'm also thrilled that the Primus team is merging with a dynamic organization like Distributel, who will continue to grow the business in Canada.”

Matt Stein, CEO of Distributel, said:

"This is a very exciting event for both companies, our employees, and our customers. Our greatest assets have always been our people, and by joining forces we have just made a huge increase in the quality of that asset. As the only Canadian telecommunications company to obtain the coveted Great Place to Work certification earlier this year, we have a strong commitment to our employees, and we welcome the Primus team to our family.”

About Fusion Connect

Fusion Connect is a telecommunications provider based in Atlanta, Georgia. The company is no stranger to M&A plays, having acquired a handful of companies in the last four years.

In 2017, Fusion bought Birch Communications in a bid to scale its cloud and network services. That deal saw the then-New York City-based Fusion Telecommunications International move its headquarters to Atlanta.

In 2018, Fusion acquired MegaPath for $71.5 million. The company has offices spread across at least eleven cities in the United States and Canada.