Atlanta, Georgia’s Momentum Telecom has acquired DCT Telecom Group, a cloud voice and network solutions provider based in Cleveland, Ohio. Financial terms of the deal were not disclosed.
Momentum says the deal will grow its customer base, as well as add scale and geography to the company’s growing cloud voice clients with significant upsell opportunities.
Todd Zittrouer, Momentum Telecom CEO, commented on the deal:
“DCT’s strong relationships in key markets and commitment to their customers make them a natural fit for Momentum Telecom. With DCT on board we will continue to expand geographically and add more enterprise customer knowledge and experience.”
DCT Founder Anthony Romano, added:
“We are proud to join forces with Momentum Telecom as they align closely with our core values. DCT customers will benefit greatly from Momentum's market-leading position and shared view on delivering excellent customer value. We look forward to continuing to deliver our high quality service with the backing and support of a leading cloud services provider.”
Bank Street Group LLC served as exclusive financial advisor to DCT in connection with the transaction.
Momentum’s M&A Plays
Founded in 2001, Momentum generated about $99.3 million in 2017 revenue, according to the annual Inc. 5000 list for 2018, the most recent data available.
In July 2018, the company attracted a majority investment from Court Square Capital Partners. The investment firm also owns a stake in AHEAD, a major IT consulting firm in Chicago.
This is far from Momentum’s first acquisition. The company has been bolstering its Unified Communications business for some time now. Recent deals that ChannelE2E has tracked include:
- Feb 2019: Momentum acquired New York-based Metro Optical Solutions, a managed network, data, and Internet solutions provider to enterprise and carrier customers worldwide.
- Dec 2018: Momentum bought Phoenix, Arizona-based CloudNet Group, a provider of cloud voice, mobility, SD-WAN, contact center, and other unified communications solutions.
Georgia-based Mergers and Acquisitions
Overall M&A activity in Atlanta and the broader Georgia region has been red hot. In the last year alone there has been more than a dozen notable deals take place. Of the ones that ChannelE2E has followed:
- Apr 2019: Corsica Technologies acquired Georgia-founded managed IT service provider EDTS and its sister company EDTS Cyber.
- Apr 2019: Coretelligent, backed by private equity firm VSS, acquired Duluth, Georgia-based MSP United Technology Group (UTG) for an undisclosed sum.
- Apr 2019: Novatech has acquired DynaSis, an Atlanta-based MSP.
- Apr 2019: The investment arm of Bain Capital acquired a majority stake in Rural Sourcing, an IT services and software development firm headquartered in Atlanta.
- Mar 2019: Two consulting firms, Tier4 Advisors and Robinson Key, have joined forces to create Tier4 Group — an IT Talent, Professional Services, and Security firm based out of Atlanta, Georgia.
- March 2019: NXTsoft acquired Digitel Corporation, an MSP from Atlanta.
- Feb 2019: Momentum Telecom of Atlanta, Georgia acquired New York’s Metro Optical Solutions. Financial terms were not disclosed.
- Feb 2019: New York City-based managed IT solutions provider BCM One recapitalized its business and acquired Siptrunk/Sip.us from Alpharetta, Georgia
- Jan 2019: Medicus IT of Atlanta, Georgia, acquired Information Strategy Design of Phoenix, Arizona
- Jan 2019: Trustpoint.One, an eDiscovery and legal solutions provider from Atlanta, bought Kelly Legal Managed Services (KLMS) for an unknown amount.
- Jan 2019: Novatech acquired Consolidated Copier Services (CCS) of Conyers, Georgia.
- Jan 2019: ThreeBridge Solutions acquired 3sage Consulting of Atlanta for an undisclosed sum.
