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Managed VoIP Merger: Digitcom, Interconnect Expand Across Canada

Digitcom and Algo’s Interconnect Division are merging and also preparing to make more acquisitions, the Canadian IT service providers have confirmed. Financial terms were not disclosed.

This is M&A Deal Number 39 that ChannelE2E has covered in 2020. See the complete M&A deal list here.

Digitcom, founded in 1991, is an Avaya Gold partner. Private equity firm Pine Hill Capital of Calgary acquired the business in 2017. Digitcom, based in Toronto, now promotes managed cloud VoIP services, unified communications, contact center solutions and real-time collaboration applications.

By contrast, Algo’s Interconnect Division provides business telecommunication systems and related peripheral products and applications, the companies say.

The combined company, branded as Digitcom, gains a deeper footprint in Vancouver, Calgary and Toronto, Canada.

Digitcom-Algo Deal: Executive Perspectives

Pine Hill Capital’s Peter Spencer

Algo Interconnect Division’s Doug Zoehner

Digitcom’s Boris Koechlin

In a prepared statement, Boris Koechlin, president of Digitcom Telecommunications Inc., said:

“We are thrilled to be welcoming Algo’s Interconnect Division team and customers to the Digitcom family.  This merger is a significant step forward towards fulfilling our vision to be a national Canadian service provider.  Digitcom looks forward to bringing our complete portfolio of voice, data and collaboration services further west.  This merger gives us a broader footprint to service our customers in Vancouver , Calgary and Toronto — with more to come as we continue to grow!”

Added Doug Zoehner, president of Algo’s Interconnect Division:

“I am excited to be able to offer a much larger national footprint for our clients on the west coast. This will significantly expand on the resources available with a much larger solution portfolio to share with our customers.  Stay tuned for some amazing things to come.”

Concluded Peter Spencer, a principal at Pine Hill:

“Pine Hill is very pleased to support Digitcom in its merger with Algo’s Interconnect Division.  We believe there is significant opportunity in Digitcom’s space to join forces with voice, data and collaboration services providers and we therefore look forward to further growth for Digitcom, both organically and by way of business combinations.”

M&A: Canada IT Service Providers

Merger and acquisition (M&A) activity involving Canadian service providers has been steady. Recent deals involve:

  • FirstLight, a fiber-optic, Internet, data center, cloud, and voice services provider, acquired Maine Fiber Company (MFC) for a Canadian network push.
  • Carbon60, backed by private equity firm M/C Partners, acquired Cirrus9 to scale managed cloud services provider (MSP and CSP) business efforts.
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